THE FRAMEWORK
FOR EXTRACTIVE INDUSTRIES GOVERNANCE IN ASEAN
LAUNCHING
JAKARTA, 28 NOVEMBER 2014
BACKGROUND
WHAT IS THIS FRAMEWORK
• A set of prescriptions to ensure extractive
industries resources can be utilized to improve human development, boost equitable economic growth of ASEAN member states, and accelerate connectivity and economic integration in ASEAN.
• A proposal from civil society of standard-setting for Extractive Industries Governance to be
implemented by ASEAN.
THE EXTRACTIVE INDUSTRIES
RESOURCES & ASEAN DEVELOPMENT
• Extractive Industries resources play vital role in ASEAN member states economic development
– Source of income/revenues
– Source of raw material and supply of energy
• Potential of minerals sector to be an engine for greater economic growth and social progress in the ASEAN
• Key component in realizing AEC’s objectives
CHALLENGES AND OPPORTUNITIES
SIGNIFICANCE
SIZE OF RESOURCES
CURRENT GROWTH OF THE SECTOR
GROWING ROLE IN THE ECONOMY
PROBLEM IN THE VALUE CHAIN
WEAK GOVERNANCE
ENVIRONMENTAL DESTRUCTION HUMAN RIGHTS VIOLATION
CORRUPTION
INTRANSPARENT PRACTICES ILLICIT TRADING
CO2 EMISSION
z
BACKGROUND
WHY THE REGIONAL FRAMEWORK IS
NEEDED ?
• Development of Extractive Industries in ASEAN requires strong and effective policy and regulatory framework.
–Balance of economic, social and environmental benefits (people, planet and profit)
–Guarantee transparency and accountability in all stage of the value chain
–Effective system to deliver tangible benefits to the citizen
–Attracting investment
WHY THIS FRAMEWORK
WHY THIS FRAMEWORK
• Consider level of extractive industries development in and diversity of
ASEAN member states
• Governance standard for extractive
industries to support the realization of
AEC
GOAL
• The development of accountable,
transparent and well governed extractive industries that effectively stimulate
economic growth at regional, national and sub-national level, environmentally
friendly, socially responsible and
appreciated by surrounding communities.
OBJECTIVES
• Provide principles and a platform for harmonization of policies in extractive industries in ASEAN member states.
• Provide standard-setting instrument for effective management of extractive industries.
• Ensure harmonization and standardization taking into consideration development stages of extractive industries in member states.
• Guidelines for development monitoring tools for progress.
THE LEGAL CONSIDERATIONS
AND PRINCIPLES
LEGAL CONSIDERATION
ASEAN CHARTER ASEAN VISION 2020
ASEAN HUMAN RIGHTS DECLARATION
2004 VIENTIAN E ACTION PROGRAM
AEC BLUE PRINT
2005 MINISTERIAL UNDERSTANDING
ON
COOPERATION IN MINERAL
ADHERENCE TO EXISTING
ASEAN PRINCIPLES
AND
GOVERNANCE
AMCAP 2011-2015
2008 MANILA DECLARATION
PRINCIPLES
SUSTAINABLE DEVELOPMENT
EQUITY BASIC RIGHTS
ACCOUNTABILITY AND
TRANSPARENCY
PRECAUTIONARY APPROACH
POLLUTERS PAY PARTICIPATORY DECISION MAKING RECOGNITION
OF GLOBALLY ADOPTED NORMS AND STANDARDS
THE FRAMEWORK
PROTECTION OF THE ENVIRONMENT
• Designation of “No-Go-Zone”
• Environmental and Social Impact Assessment
• Prevention of hazardous spillage
• Compliance mechanism and audit
• Rehabilitation fund
• Managing environmental impact of small
and artisanal mining
RESPECT AND PROTECT HUMAN RIGHT
• Respect and protect human right in extractive industries activities
• Respect and protect local community, impacted community and indigenous people
• Abide international Human Rights mechanism in conflict zone
• Grievance mechanism
• Guidelines for relocation and compensation
• Peaceful cohabitation small and large scale resource extraction rights holders.
TRANSPARENT AND ACCOUNTABLE PRACTICE
• Penalties for false, incomplete, misleading information to the public
• Implementation of EITI
• Combat illicit mineral commodities trading
• Certification of mineral commodities trade
• Database on extractive industries resources
• Openness of data related to revenue flow
• Transparent decision making process
• Oversight for artisanal and small scale mining
SOUND FISCAL FRAMEWORK FOR ECONOMY GROWTH
• Legislation to optimize and protect revenue
• Channel all revenues to budget system
• Spending for basic and social infrastructure
• Investment in resource knowledge infrastructure
• Development of downstream and upstream value addition
• Revenue sharing to local community
• Establishment of natural resource fund
• Auction and competitive bidding
MEANS OF
IMPLEMENTATION
COUNTRY LEVEL PROCESS
• Establish multi-stakeholders group to carry out the RA/GA, set up focal point
• Undertake Rapid Assessment/Gap Analysis (RA/GA)
• Based on RA/GA, draw Action Plan
• Implement the Action Plan
• Review the result and report to ASEAN
sectoral body
ASEAN LEVEL
• Sectoral body adopt and promote the Framework
• Review mineral/energy policies of ASEAN member states
• Setting/establish peer-review mechanism of RA/GA
• Setting mechanism to monitor the implementation
• Provide technical assistances, enhance dialogues with stakeholders, and dialogue partner
ASEAN LEVEL
• Set initiative, sectoral body adopt and promote the Framework
• Review mineral/energy policies of ASEAN member states
• Setting/establish peer-review mechanism of RA/GA
• Setting mechanism to monitor the implementation
• Provide technical assistances, enhance dialogues with stakeholders, and dialogue partner
