Context

The energy transition is expected to shape the future of resource-dependent countries, impacting government revenues, investment decisions, and development at the local level. While some regions and localities might benefit from increased investments in strategic minerals, others might face economic losses when transitioning away from fossil fuel production. The transition to a low-carbon economy will have implications for the world’s reliance on fossil fuels as a source of energy and the supply of strategic minerals, which are vital in scaling up renewable energy and electric batteries. For communities dependent on fossil fuel production and mineral extraction, the energy transition will impact revenues derived from extractive activities, employment and local procurement opportunities, and companies’ social and economic contributions.

The EITI International Secretariat, with the support of the Ford Foundation, commissioned a study on ¨Empowering Local Communities in EITI Implementing Countries” that ultimately recommended the need for MSGs to establish the link between furthering transparency and addressing more comprehensive accountability and governance challenges both at the national and the local levels. Through this link – having project level and subnational sector data – local communities can better participate in the sector’s governance. The project “Engaging communities in a just transition through EITI implementation” by Publish What You Pay (PWYP) Indonesia is a follow-up of the mentioned study. The activities herein will look at opportunities for the EITI Indonesia Multi-stakeholder Group (MSG) to provide a platform for local actors to engage in regional and national decision-making processes to bridge the gap between local, regional, and national sector governance. The expectation is that adequate reporting and debate at the local level would enhance local communities’ participation in the sector’s oversight and that it will also help inform national transition plans and the MSG’s agenda by ensuring that local community perspectives are taken into consideration for an equitable and inclusive transition. Furthermore, the project will look to involve national and local authorities on how to best use EITI data for development planning and policy decisions around the just transition.

The activities herein aim to support local civil society and communities to understand, debate, address, and prepare for the impact of the energy transition in communities dependent on extractive industries in resource-dependant countries. It also seeks to build local knowledge and capacity around the implications of the transition to engage in meaningful debate at the local level and shape policy options regarding the just transition using EITI data and information. Lastly, the activities will help establish the link between the local community and their sub-national data needs for EITI Indonesia MSG’s consideration. The project will emphasize local understanding of community needs in discussions around the energy transition and how those feed into the country’s long-term vision. It will also help to explore MSG opportunities to integrate the energy transition into their work plan and mandate and for the MSG to serve as a national amplifying platform to extend local community concerns.

Objectives

This project aims to provide:

  1. civil society and local communities, specifically those in the Morowali District located in Central Sulawesi, with a better understanding of the impact of the energy transition on the extractive sector and their livelihoods, specifically on variations in sub-national revenue from ongoing and planned projects informed by EITI data,
  2. the EITI Indonesia MSG with a better understanding of local community needs, opportunities, and possible risks around the energy transition through sub-national level reporting – based on the case study community in the Morowali District, and
  3. local communities with an opportunity to engage the EITI Indonesia MSG platform to amplify the voice of communities for improved energy and natural resource governance.

Scope of services

The project should cover the following aspects divided into three components:

  • Component 1: Scoping study, assessment of sub-national revenue data on extractive and energy transition projects and recommendations
  • Component 2: Stakeholder Capacity Building
  • Component 3: National Engagement and Learning
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