Accelerating the energy transition The COVID-19 crisis has cast uncertainty on the speed and trajectory of the global transition to renewable energy. While oil prices fell to historic lows in 2020, many countries increased extractive production outputs to offset income losses. Demand for battery minerals is growing, causing a resurgence of governance challenges related to revenue collection and social and environmental impacts. In addition, many extractive companies have announced ambitious climate targets. To be sustainable, the shift to renewables needs a transparent and accountable extractive sector. Data on the current and expected production, exports, revenues and employment of the sector can inform investment decisions on future fossil fuel projects and can help shape new policies on energy and mineral production. In October 2020, the EITI Board agreed to conduct a pilot analysis with select countries on how data can inform debate on the energy transition, drawing on encouraged disclosures from flexible EITI reporting. This information will be critical in supporting understanding of how climate commitments have been translated into action and how the energy transition will affect public finances in resource-rich countries. ZAMBIA Zambia’s latest flexible EITI Report documents the substantial impact of the COVID-19 crisis on mining operations, exports and company cash positions. Over 60% of the surveyed companies indicated that they had decreased revenue forecasts by 30 to 50% and that production would fall by more than 10%. In response to the pandemic, the government provided incentives and introduced tax relief measures for extractive companies. The latest EITI disclosures have informed public debate on the scale of the pandemic’s impact on the mining sector and the national economy. Further discussions on the mining fiscal regime are still underway and are amplified by the recent boom in copper prices. Flexible reporting enabled Zambia EITI to produce a more analytical report with timely data. Taking a risk-based approach, Zambia EITI focused its reconciliation exercise on revenue streams that had the largest discrepancies in previous years and addressed gaps in data quality. Zambia EITI further plans to adopt the flexible approach for its next report. 9 Photo credit: Jan Arne Wold / © Equinor 0 2 4 6 8 0 2 0 2 4 6 8 0 5 USD 25M In 2020, tax and duty exemptions caused government extractive revenues to decrease by USD 25 million, according to the latest EITI disclosures. USD 25M In 2020, tax and duty exemptions caused government extractive revenues to decrease by USD 25 million, according to the latest EITI disclosures. USD 25M In 2020, tax and duty exemptions caused government extractive revenues to decrease by USD 25 million, according to the latest EITI disclosures.