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Overview

  • Natural resources have the potential to drive growth, development and poverty reduction. The extractive industries sector plays a strong economic role in 63 countries, but many of these countries face challenges, such as resource dependency and weak governance.

    The World Bank helps developing countries manage oil, gas and mining in a way that contributes to sustainable growth and development, protects communities and reduces carbon emissions. We focus on strengthening the transparency, governance, institutional capacity and regulatory environment of developing countries’ extractives sectors. The World Bank also supports governments to accelerate the energy transition and reduce the carbon emissions of their oil, gas and mining sectors, by displacing polluting fuels such as coal, diesel and heavy fuels with less polluting fuels, and in the long-term, clean energy.

    The World Bank Group is taking broad, fast action to help developing countries respond to coronavirus (COVID-19). We work closely with countries that rely on oil, gas and mining to help them boost economic recovery and resilience and protect the poorest and most vulnerable, such as those working in artisanal and small-scale mining.  Through the EGPS Trust Fund, the World Bank supports artisanal and small-scale miners and their communities to better cope with the impacts of COVID-19, providing short-term and medium-term assistance to communities. 

    Last Updated: Apr 26,2021

  • The World Bank’s work in the extractives sector focuses on:

    1. Holistic sector reforms that maximize the benefits of the oil, gas and mining sectors, in a way that contributes to sustainable and inclusive development and helps governments attract, manage and realize the development potential of the extractives sector. This involves minimizing any negative impacts on people and the environment from extraction.
    2. Accelerating the energy transition and climate action by reducing the emissions of the oil, gas and mining sectors. Current work includes:
    • The Climate-Smart Mining initiative : helping resource-rich developing countries to manage the increasing demand for minerals and metals needed for a low-carbon future, by implementing sustainable, “climate-smart” mining practices. The climate-smart mining approach minimizes social, environmental and climate footprints by integrating renewable energy into mining operations, preventing deforestation, repurposing mine sites and recycling of minerals. 
    • The Supporting Energy Transition in Coal Regions initiative: supporting countries to transition away from coal, by helping governments to close coal mines and ensuring a “Just Transition for All” that protects and respects people and the environment. The World Bank helps national and subnational governments to develop roadmaps to help coal regions implement effective policies and strengthen institutional capacities. Ongoing assistance to coal regions can take many forms, spanning a variety of challenges and solutions associated with regional transformation.

    Dedicated Multi-Donor Trust Funds support the World Bank’s engagement in developing countries:

    • The Extractives Global Programmatic Support (EGPS) Multi-Donor Trust Fund supports resource-dependent developing countries in the governance of their oil, gas, and mineral resources so they are used sustainably and transparently to reduce poverty and boost sustainable economic growth. Its programs range from transparency and governance, to legal and regulatory reform, local economic diversification, strengthening institutions, and social and environmental sustainability.
    • The Global Gas Flaring Reduction Partnership (GGFR) Multi-Donor Trust Fund, composed of governments, oil companies, and multilateral organizations, works to end routine gas flaring at oil production sites across the world. The Partnership helps identify solutions to the many technical and regulatory barriers to flaring reduction by developing country-specific flaring reduction programs, conducting research, sharing best practices, raising awareness, increasing the global commitments to end routine flaring, and advancing flare measurements and reporting.

    Last Updated: Apr 26,2021

    • AfghanistanThe Bank is working closely with the government to ensure the sustainable development of the country’s natural resources. The current project facilitates a sustainable supply of gas through targeted investments in gas infrastructure and enhanced gas sector governance, doubling the deliverability of commercial quality natural gas that can be used for energy access. The Bank also helps manage ancient and treasured cultural assets around the Mes Aynak site.
    • Burkina Faso: The World Bank has provided technical assistance to the mining sector, directly benefiting over 19,000 people, including over 4,000 women. The technical assistance program supported an improved regulatory and policy framework.
    • Democratic Republic of Congo (DRC): With World Bank support, women working across the mining sector in DRC organized themselves to establish a national network to advance gender equity. The World Bank held two "Women in Mining Conferences" in 2015 and 2017 and conducted an in-depth survey in 2016/17 across five major mining provinces, which then resulted in elections for a new national Women in Mining network. The World Bank also delivered pilots on women’s working conditions and child labor. The latter pilot program succeeded in getting 1,200 children out of child labor and into school and training.
    • Guinea: The Bank is helping build systems and capacity to manage the country’s mining sector, including the development of major growth corridors around bauxite and iron ore mines.
    • Iraq:  Iraq's Council of Ministers has formally adopted The Natural Gas Market Framework (NGMF), marking the first phase of an internationally benchmarked and transparent framework to allow private sector investors to capture, process, transport and commercialize natural gas. The reforms have the potential to bring $21 billion of private sector investment into Iraq and provide power to Iraqis who lack basic access to energy.
    • MozambiqueThe Bank is supporting the government by strengthening the capacity and governance systems of key institutions to manage the mining and hydrocarbon sectors.
    • Nigeria: The Bank is helping the country substantially enhance the mining sector’s contribution to the economy, while strengthening key government institutions and fostering domestic investment in the sector. The World Bank’s Global Gas Flaring Reduction Partnership is also supporting the government in its efforts to end the polluting and wasteful practice of routinely flaring gas during oil production, in line with its Nationally Determined Contribution under the Paris Agreement, and as a means to provide Nigerian citizens more access to energy.
    • Rwanda: the government of Rwanda created a new mining law and clear framework for the country’s mining sector. The new mining law was informed by the African Mining Legislation Atlas (AMLA), which was compiled and created by the World Bank, as part of the Extractives Global Programmatic Support (EGPS) Multi-Donor Trust Fund.
    • Senegal: following three major oil and gas discoveries, the Bank is helping to build the capacity of the government and providing support and technical advice to negotiate oil and LNG contracts to boost investments and foster sustainable gas sector development. This should lay the foundations for the sector’s contribution to the economy.
    • Togo: The Bank is helping streamline the institutional framework of key government agencies involved in the extractives sector to strengthen efficiency and accountability for effective management of the sector. The Bank is also helping artisanal and small-scale mine operators develop skills while raising awareness of sustainable mining practices in communities affected by mining operations.
    • "Zero Routine Flaring by 2030" Initiative: as of March 2021, 79 governments and oil companies, accounting for just under 60% of global gas flaring, have committed to (a) not routinely flare associated gas in new oil field developments and (b) to end existing (legacy) flaring as soon as possible and no later than 2030.
    • As part of the "Supporting Energy Transition in Coal Regions" initiative, the World Bank, in partnership with the European Commission, is assisting Poland to ensure a ‘Just Transition’ in the country’s primary coal regions of Dolnośląskie (Lower Silesia), Śląskie (Silesia) and Wielkopolskie (Greater Poland). The project will focus on enhancing the capacity of coal regions to plan for a Just Transition through job creation, repurposing of former mining lands and stakeholder engagement.
    • The World Bank is also facilitating a knowledge exchange between the coal regions of Poland and Ukraine, helping both countries prepare for an energy transformation in the coming years. Representatives from Ukraine’s public and private sectors will visit Polish coal regions and share challenges and experiences.
    • Through EGPS, the World Bank is a major supporter of Extractive Industries Transparency Initiative (EITI) implementation in developing countries. More than a standard, implementation of EITI creates dialogue between industry, government and civil society and is linked to broader policy reforms. EGPS has supported over 50 countries, of which more than 80% achieved meaningful or satisfactory progress, meaning that most EITI requirements have been implemented and the broader objectives of EITI requirements have been fulfilled. These countries’ successes are critical milestones in the journey towards a transparent, accountable sector globally.
    • EGPS also supports the Extractives-Led Local Economic Diversification (ELLED) program, which promotes local economic diversification and the development of competitive local industries in mineral and hydrocarbons rich economies. ELLED supports cutting-edge research and the systematization and sharing of existing knowledge to address extractives-related policy challenges, including climate smart investment, strategic spatial planning, forward looking value chains, and the development of network economies.
    • EGPS recently created a new emergency response for vulnerable artisanal and small-scale mining communities impacted by COVID-19, providing short-term and medium-term assistance to a range of international, regional, national and local organizations engaged in the sector.

    Last Updated: Apr 26,2021

  • To achieve sustainability goals and improved governance in extractive industries, the World Bank has developed partnerships with a wide range of organizations in the sector. This helps align efforts, while also leveraging resources and expertise to end poverty and boost shared prosperity.

    • Donors to the Extractives Global Programmatic Support Multi-Donor Trust Fund: Australia, Belgium, Canada, the EU, Finland, France, Germany, the Netherlands, Norway, Switzerland, and the United Kingdom.
    • Governments in the Global Gas Flaring Reduction Partnership include Algeria; Azerbaijan; Cameroon; Republic of Congo; Gabon; Indonesia; Iraq; Kazakhstan; Khanty-Mansiysk (Russian Federation); Kuwait; Mexico; Nigeria; Norway; Qatar; and Uzbekistan. Companies include BP; Chevron; Eni; Equinor; ExxonMobil; Pemex; Shell; SNH (Cameroon); SOCAR; Sonatrach; and Total. Multilateral organizations include the European Bank for Reconstruction and Development (EBRD); the European Union; and the World Bank.

    Other partners include:

    Last Updated: Apr 26,2021

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VIDEO Jul 29,2020

Maximizing the Benefits of Oil, Gas and Mining for Developing Countries

Minerals, metals, natural gas and oil have the potential to drive economic growth and contribute to poverty reduction. However, natural resource wealth does not always translate into sustainable development. Resource-rich developing countries face a range of challenges such as corruption, a complexity of reforms, economic dependence, adverse social and environmental impacts and gender inequality. The World Bank`s Extractives Global Programmatic Support (EGPS) multi-donor trust fund supports resource-dependent developing countries in the governance of their oil, gas and mineral resources so they are used sustainably and transparently to reduce poverty and boost sustainable economic growth.


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In Depth

Emergency Relief Response for Artisanal and Small-Scale Mining Communities

The World Bank`s Extractives Global Programmatic Support (EGPS) has created a new emergency response for vulnerable artisanal and small-scale mining communities impacted by COVID-19.

Gender in Extractive Industries

The second Global Gender Oil, Gas and Mining Conference, "Getting to Equal in a Changing World," will be held virtually on March 3-4, 2021.

Zero Routine Flaring by 2030

This Initiative brings together governments, oil companies, and development institutions who agree to eliminate the practice by 2030.

Governance of Extractive Industries

A space for dialogue, innovation and collaboration for those working on extractive industries governance and transparency.

Additional Resources

Contacts

Washington, DC
Anita Rozowska
arozowska@worldbankgroup.org
Clare Murphy-McGreevey
cmurphymcgreevey@worldbank.org