Natural Resource Governance Institute – advancing good governance in resourcerich countries


The commodities sector plays a crucial role in many developing countries, particularly in terms of domestic resource mobilisation, but also because of the manifold challenges attached to the sector such as illicit financial flows, human rights abuses and environmental degradation. Through its partnership with NRGI, Switzerland contributes to improving the governance of mineral resources in resource-rich developing countries, also in light of the ongoing global energy transition.

Country/region Topic Period Budget
Global
Governance
Other

Mineral/mining policy
Sector not specified
Domestic revenue mobilisation
Anti-corruption organisations
01.04.2023 - 31.12.2025
CHF  1’730’000
Background Without inclusive approaches to managing their resources effectively and building a just transition to a sustainable future, many resource-rich countries in the Global South will struggle to achieve key development and security objectives, the energy transition will be delayed, and social conflicts and unrest will continue. Fossil fuel-rich countries have made slower progress than others in transitioning their domestic energy systems to renewables, threatening global low-carbon ambitions, especially given high population growth in many resource-rich developing countries. A boom in demand for transition minerals that underpin renewable technologies poses major corruption risks, while actors with vested interests in fossil fuels stand in the way of a greener future. As a leading commodity trading hub, and with a view to foster sustainable economic development and political stability worldwide, Switzerland has a responsibility to address challenges related to global natural resource use.
Objectives Developing countries rich in oil, gas and minerals achieve sustainable and inclusive development, and their people receive lasting benefits from extractives and experience reduced harms (NRGI strategic goal 2020-2025).
Target groups When advising resource-rich countries, NRGI addresses a whole range of target groups, ranging from government institutions, civil society and media representatives to oversight institutions such as parliamentary groups.
Medium-term outcomes

-    Transition Mineral Good Governance: Drive systemic change to reduce harms from mining and to ensure equitably benefit for people from the responsible scale up of transition minerals necessary to avert global climate change;

-    Fossil Fuel Transition: Build inclusive economies that end dependence on fossil fuel extraction and advance a just energy transition for citizens;

-    Sustainable Revenue Management: Manage revenues from extraction accountably, in line with citizen priorities.

Results

Expected results:  

-    Application of NRGI’s anti-corruption diagnostic tool in DRC, Guinea and Chile;

-    Development of guidance materials and publications that support EITI stakeholders to become more effective anticorruption actors in DRC, Guinea and Chile; 

-    Monitoring of government decisions, beneficial ownership and corruption risks in selected NRGI priority countries;

-    Comparative action-research on just transitions for coalmining dependent regions in Colombia;

-    Support to national oil companies in Ghana and Mexico to build energy transition plans and investment strategies focusing on decarbonisation and diversification;

-    At the overall policy level, NRGI aims to develop a global benchmark for a just transition in resource-rich developing countries, building on its Resource Governance Index.


Results from previous phases:  

-    Report published that explores the risks the energy transition brings for National Oil Companies and governments reliant on oil revenues;

-    NRGI’s report on resource-backed loans was well received by the international policy community;

-    NRGI continued to generate ideas and spark public dialogue regarding the opportunities and challenges related to the energy transition pathways of resource-rich countries; 

-    NRGI published the first-ever corruption diagnostic tool focusing on the extractive sector, helping relevant actors to conduct evidence-based and inclusive assessments of extractive sector corruption risks;

-    NRGI also published the 2021 edition of its flagship Resource Governance Index, assessing the governance of extractive sectors in 18 countries;

-    Given its successul engagement at country level (e.g. in DRC, Mongolia), NRGI will expand its assistance to resource-rich developing countries, linking global policy work with a strong operational presence on the ground;

-    In future, more emphasis shall be placed on generating data that are demand-driven and crucial for policy-making.


Directorate/federal office responsible SDC
Project partners Contract partner
International or foreign NGO
Private sector
  • Other international or foreign NGO North
  • Swiss Private Sector


Other partners
Natural Resource Governance Institute (NRGI), New York / USA 
Coordination with other projects and actors

-    Coordination with AFM/SECO/SIF in the context of the Interdepartmental Platform on Resources; IISD/IGF (SDCsupported project “The future of resource taxation”)

-    Integrated Embassies or Cooperation Offices in SDC/SECO partner countries

Budget Current phase Swiss budget CHF    1’730’000 Swiss disbursement to date CHF    480’000
Project phases Phase 3 01.04.2023 - 31.12.2025   (Current phase) Phase 2 01.04.2020 - 31.03.2023   (Completed) Phase 1 01.10.2014 - 31.12.2019   (Completed)