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Canada

Mandatory Reporting on Extractives (CA0036)

Overview

At-a-Glance

Action Plan: Canada, Second Action Plan, 2014-16

Action Plan Cycle: 2014

Status: Inactive

Institutions

Lead Institution: Natural Resources Canada

Support Institution(s): NA

Policy Areas

Extractive Industries, Legislation & Regulation

IRM Review

IRM Report: Canada End-of-Term Report 2014-2016

Starred: Yes Starred

Early Results: Major Starred

Design i

Verifiable: Yes

Relevant to OGP Values: Access to Information Civic Participation

Potential Impact:

Implementation i

Completion:

Description

The Government of Canada will introduce legislation on mandatory reporting standards for the extractive sector that require the reporting of certain payments made to
governments related to the commercial development of oil, gas, and minerals.

IRM End of Term Status Summary

Commitment 7. Mandatory Reporting on Extractives (✪)

Commitment Text:

The Government of Canada will introduce legislation on mandatory reporting standards for the extractive sector that require the reporting of certain payments made to governments related to the commercial development of oil, gas, and minerals.

As a country with abundant natural resource wealth, Canada understands the necessity of openness and accountability in resource development both at home and abroad. Responsible development attracts investment, helps enhance the reputation of Canada's extractive firms, and strengthens international partnerships.

In 2013, G8 leaders noted that in many developing countries there is huge potential for economic growth based on abundant natural resource reserves. The Government of Canada is meeting its international commitment to establish mandatory reporting standards by 2015 for the extractive sector and doing its part to contribute to raising global standards of transparency. Raising global standards of transparency will improve accountability in the sector and reduce corruption and other illicit activities.

The Government of Canada will establish reporting standards for the extractive sector, requiring extractive entities to report on certain payments made to governments in Canada. Extractive entities are often required to make such payments to cover licence fees, rental and entry fees, royalties, and other costs. Mandatory reporting standards will increase Canadians' awareness about how extractive companies' revenues are spent, which supports transparency and social responsibility and helps to combat corruption.

By creating an open reporting environment, with clear and understandable information made available to the public, greater transparency and accountability in resource development can be achieved everywhere Canadian extractive firms operate.

Deliverables to be completed in 2014-16:

  • Introduce new legislation that will require extractive entities to implement mandatory reporting standards and report annually on payments to all levels of government, domestically and internationally.
  • Ensure stakeholder engagement on the establishment and implementation of these mandatory reporting standards.
  • Require extractive entities to publish data on the payments they make to governments in Canada and around the world.

Responsible institution: Natural Resources Canada

Supporting institution(s): None

Start date: November 2014   End date: 30 June 2016

Editorial note: This is a starred commitment, because it is measurable, clearly relevant to OGP values as written, of transformative potential impact, and was substantially or completely implemented.

Commitment Aim:

This commitment aims to establish legislation based on stakeholder engagement, to improve reporting standards for the extractives industry. Under the legislation, extractive entities would be required to publish data on the payments they make to governments in Canada and around the world.

STATUS

Mid-term: Substantial

The first milestone was met in the first year of the second action plan cycle. The Extractive Sector Transparency Measures Act was assented to on 16 December 2014 and came into force on 1 June 2015. Engagement activities referenced under milestone number two were ongoing at the time of the mid term progress report. The third milestone was fulfilled by the passing of the new legislation requiring extractive entities to publish data annually within 150 days after their fiscal year end - with the exception of aboriginal governments, which have a two-year deferral.

End of term: Substantial

Natural Resources Canada (NRCan) consulted with provinces, industry and civil society stakeholders in an effort to fulfill milestone number two and to develop implementation tools to support adherence to the Extractive Sector Transparency Measures Act. These consultations were used to develop Guidance and Technical Reporting Specifications that were published online 1 March, 2016.  Extractive Sector Transparency Measures Act, http://www.nrcan.gc.ca/mining-materials/estma/18180  Engagement sessions were held in 11 cities and were attended by 70 industry representatives, over 20 civil society representatives, and more than 40 aboriginal governments and national aboriginal organizations.  Summary of sessions http://open.canada.ca/en/consultations/mandatory-reporting-standards-for-extractive-sector-what-we-heard  The Government of Canada published a ‘What we Heard’ document based on these engagement activities.  Summary of sessions http://open.canada.ca/en/consultations/mandatory-reporting-standards-for-extractive-sector-what-we-heard

According to government, engagement activities are ongoing to ensure compliance with the new legislation and to better understand the impact of the legislation on specific communities.

Did it open government?

Access to information: Major

The Extractive Sector Transparency Measures Act (ESTMA) came into force on 1 June, 2015. The legislation sets out a framework for transparency in the extractive sector that will lead to the flow of new information stemming from its new reporting guidelines.  Reporting requirements apply to companies that are or have securities listed on a stock exchange in Canada, have a place of business in Canada, do business in Canada, or have assets in Canada. Companies must also meet two of the three following minimum size-related thresholds to be included in required reporting: in at least one of its two most recent financial years, the company must (1) have at least C$20 million in assets, (2) have generated at least C$40 million in revenue, and/or (3) employ an average of at least 250 employees.  Natural Resources Canada, http://www.nrcan.gc.ca/mining-materials/estma/18802#A2

While the new legislation and reporting does necessitate reporting which supports increased transparency, civil society actors interviewed for the mid-term progress report wanted to see the government go further by implementing the Extractive Industries Transparency Initiative (EITI): “While the Government of Canada has supported EITI, it does not implement the standard. Implementing the standard would, among other things, foster citizen engagement as well as simplify and improve the ability for stakeholders to locate information regarding the extractive industries. Under EITI, there is “a centralized repository where records can quickly be downloaded and compared.” Under the current situation captured by the existing commitment, Canada’s ‘compliance’ involves each company maintaining its own records ‘somewhere’ and will require anyone interested in actually figuring out what is going on to track down each one individually.  Canada Progress Report 2014-2015, http://www.opengovpartnership.org/sites/default/files/1.Canada14-15_English_Final_0.pdf

It can however be noted that NRCan offers a central repository of links to reports.  As reports are submitted to NRCan under the ESTMA, they will be found at www.nrcan.gc.ca/ESTMA.

Civic participation: Major

The Government of Canada has engaged with a number of actors including the provinces, the extractive industry and civil society in an effort to develop guidance and technical specifications regarding transparency in extractive industries.  Tools for Extractive Businesses, http://www.nrcan.gc.ca/mining-materials/estma/18192   This engagement was carried by Natural Resources Canada even prior to the passing of the ESTMA. According to the government, stakeholder compliance engagement is ongoing and is expected to continue in the initial years of implementation.

It followed good engagement practices by publishing both the comments it received as well as a ‘What we Heard’ document synthesizing the feedback provided.

Carried forward?

This commitment was carried forward to the third action plan under Commitment 17 ‘Implement the Extractives Sector Transparency Measures Act.’ Milestones include:

  • Undertake outreach activities with reporting entities to ensure awareness and understanding of processes for publishing their reports based on a consistent template and format.
  • Improve public access to published reports through a common online window.
  • Seek broader alignment of ESTMA with other jurisdictions in Canada and around the world.  Canada’s Third Biennial Plan to the Open Government Partnership 2016 – 2018, http://www.opengovpartnership.org/sites/default/files/Canada_AP3.pdf

Canada's Commitments

  1. User-friendly open government

    CA0064, 2018, Capacity Building

  2. Financial transparency and accountability

    CA0065, 2018, E-Government

  3. Corporate transparency

    CA0066, 2018, Beneficial Ownership

  4. Digital government and services

    CA0067, 2018, Capacity Building

  5. Open science

    CA0068, 2018, Capacity Building

  6. Healthy democracy

    CA0069, 2018, E-Government

  7. Access to Information

    CA0070, 2018, Capacity Building

  8. Feminist and inclusive dialogue

    CA0071, 2018, Capacity Building

  9. Reconciliation and open government

    CA0072, 2018, Capacity Building

  10. Open government community

    CA0073, 2018, Capacity Building

  11. Enhance Access to Information

    CA0042, 2016, Legislation & Regulation

  12. Streamline Requests for Personal Information

    CA0043, 2016, E-Government

  13. Expand and Improve Open Data

    CA0044, 2016, E-Government

  14. Provide and Preserve Open Information

    CA0045, 2016, E-Government

  15. Define an Approach for Measuring Open Government Performance

    CA0046, 2016, Capacity Building

  16. Develop Open Government Skills across the Federal Public Service

    CA0047, 2016, Capacity Building

  17. Embed Transparency Requirements in the Federal Service Strategy

    CA0048, 2016, Capacity Building

  18. Enhance Access to Culture & Heritage Collections

    CA0049, 2016, Capacity Building

  19. Enhance Openness of Information on Government Spending and Procurement

    CA0050, 2016, Capacity Building

  20. Increase Transparency of Budget and Other Department of Finance Information

    CA0051, 2016, Capacity Building

  21. Starred commitment Increase Transparency of Grants and Contributions Funding

    CA0052, 2016, Capacity Building

  22. Improve Public Information on Canadian Corporations

    CA0053, 2016, E-Government

  23. Increase the Availability and Usability of Geospatial Data

    CA0054, 2016, Capacity Building

  24. Increase Openness of Federal Science Activities (Open Science)

    CA0055, 2016, Capacity Building

  25. Stimulate Innovation through Canada’s Open Data Exchange (ODX)

    CA0056, 2016, E-Government

  26. Align Open Data across Canada (Open Data Canada)

    CA0057, 2016, Capacity Building

  27. Implement the Extractives Sector Transparency Measures Act

    CA0058, 2016, Capacity Building

  28. Support Openness and Transparency Initiatives around the World

    CA0059, 2016, Aid

  29. Engage Civil Society on Open Government

    CA0060, 2016, Public Participation

  30. Enable Open Dialogue and Open Policy Making

    CA0061, 2016, Capacity Building

  31. Promote Open Government Globally

    CA0062, 2016, Capacity Building

  32. Engage Canadians to Improve Key Canada Revenue Agency Services

    CA0063, 2016, Fiscal Transparency

  33. Implement Directive on Open Government

    CA0030, 2014, Open Data

  34. Starred commitment Open Data Canada

    CA0031, 2014, Open Data

  35. Canadian Open Data Exchange (ODX)

    CA0032, 2014, Capacity Building

  36. Open Data for Development

    CA0033, 2014, Capacity Building

  37. Open Data Core Commitment

    CA0034, 2014, Open Data

  38. Starred commitment Open Science

    CA0035, 2014, Science & Technology

  39. Starred commitment Mandatory Reporting on Extractives

    CA0036, 2014, Extractive Industries

  40. Open Contracting

    CA0037, 2014, Open Contracting and Procurement

  41. Open Information on Budgets and Expenditures

    CA0038, 2014, Fiscal Transparency

  42. Digital Literacy

    CA0039, 2014, Capacity Building

  43. Open Information Core Commitment

    CA0040, 2014, Right to Information

  44. Consulting Canadians

    CA0041, 2014, Marginalized Communities

  45. Starred commitment International Aid Transparency Initiative: Publish plan to make CIDA activities available and accessible

    CA0010, 2012, Aid

  46. International Aid Transparency Initiative: Implement plan

    CA0011, 2012, Aid

  47. Opening Government of Canada Records: Increase access to archived federal documents at Library and Archives Canada

    CA0012, 2012, Records Management

  48. Opening Government of Canada Records: Issue new mandatory policy on document classification

    CA0013, 2012, Records Management

  49. Opening Government of Canada Records: Make classified information available online

    CA0014, 2012, E-Government

  50. GCDOCS: Deploy wave one of electronic record and document management solution

    CA0015, 2012, E-Government

  51. GCDOCS: Deploy across federal government

    CA0016, 2012, E-Government

  52. GCWEB: Develop consolidated web presence

    CA0017, 2012, E-Government

  53. GCWEB: Implement new platform

    CA0018, 2012, E-Government

  54. Data.gc.ca: Expand number of datasets available

    CA0019, 2012, E-Government

  55. Data.gc.ca: Implement data.gc.ca portal

    CA0020, 2012, E-Government

  56. Data.gc.ca: Improve standardization of data

    CA0021, 2012, E-Government

  57. Government of Canada Resource Management Data: Publish resource management and performance data

    CA0022, 2012, E-Government

  58. Government of Canada Resource Management Data: Enhance search and data tools

    CA0023, 2012, E-Government

  59. Consulting Canadians: Develop new platform for consultation

    CA0024, 2012, E-Government

  60. Consulting Canadians: Develop standard approach to use of social media

    CA0025, 2012, E-Government

  61. Consulting Canadians: Pilot a crowdsourcing initiative

    CA0026, 2012, E-Government

  62. Consulting Canadians: Enable use of common online tools

    CA0027, 2012, E-Government

  63. Open Regulation: Federal regulators to post forward regulatory plans

    CA0028, 2012, Legislation & Regulation

  64. Open Regulation: Simplify engagement activities

    CA0029, 2012, Legislation & Regulation

  65. Open Government Directive: Issue Directive on Open Government

    CA0001, 2012, E-Government

  66. Open Government Directive: Implement Directive on Open Government

    CA0002, 2012, E-Government

  67. Starred commitment Open Government Licence: Issue Open Government Licence

    CA0003, 2012, Legislation & Regulation

  68. Starred commitment Open Government Licence: Adopt Open Government Licence

    CA0004, 2012, Records Management

  69. Modernising Administration of Access to Information: Pilot of online request and payment service

    CA0005, 2012, Fiscal Transparency

  70. Modernising Administration of Access to Information: Implement ATI Solution

    CA0006, 2012, Fiscal Transparency

  71. Modernising Administration of Access to Information: Make completed ATI request summaries searchable

    CA0007, 2012, Right to Information

  72. Virtual Library: Begin design of virtual library

    CA0008, 2012, E-Government

  73. Virtual Library: Launch virtual library

    CA0009, 2012, E-Government