Transparency in the Extractive Industries: Time to Ask for More

Amid accusations of tax avoidance directed towards some of the world’s largest multinationals, governments around the globe have started to act. Triggered by the 2010 US Dodd-Frank Act (Section 1504), the EU passed ambitious legislation in June 2013 on transparency. In this article I discuss those policies, along with extractive industries initiatives. I argue that transparency norms should be extended to environmental pressures. A driving force could be the vision of increasing revenues and public investments for green economies in resource rich developing countries, with global prosperity stemming from increasing resource efficiency and lowering environmental risks along international value chains. Accordingly, I develop two scenarios for the future: a “realistic” one with limited participation, weak enforcement, and cumulated ensuing risks; and an “opportunity” scenario, which involves taking opportunities for cooperation and resource efficiency. Finally, I draw conclusions and provide recommendations toward a global environmental politics with a strong transparency component.