Natural resource extraction is environmentally damaging and beset by corruption. Lack of transparency around contracting has meant that vast sums of money that should have benefitted citizens of resource-rich countries have gone into the pockets of corrupt politicians and the offshore bank accounts of company executives.
Of the USD 1.2 trillion generated each year by the sale of oil and gas commodities, on average just 22% of the proceeds reach governments.
Having transparent extractive contracts allows communities to scrutinise the social and environmental costs and benefits of projects, which reduces corruption and builds trust between people, governments and companies.
And as we fight the climate crisis, contract disclosure also helps people to understand how the energy transition will impact government coffers.
After a decades-long campaign, contract transparency has now been endorsed by the United Nations, the International Monetary Fund, and at least 42 extractive companies. 55 companies implementing the Extractive Industries Transparency Initiative (EITI) standard are now required to disclose their contracts. PWYP played a crucial role in making this happen.
