Implement the Extractives Sector Transparency Measures Act - Commitment 17
Mid-term (July 1, 2016 to June 30, 2017)
What is the public problem that the commitment will address?
The Government of Canada remains committed to improving the transparency and accountability of the Canadian extractives sector. In its second Action Plan, legislation was introduced, the Extractive Sector Transparency Measures Act (ESTMA), which established new reporting and transparency obligations for the Canadian extractive sector to contribute to global efforts against corruption in the extractive sector.
What is the commitment?
The Government of Canada will implement the Extractive Sector Transparency Measures Act (ESTMA) that requires the reporting of certain payments made to governments related to the commercial development of oil, gas, and minerals.
How will the commitment contribute to solve the public problem?Canada’s extractive sector has a well-established financial reporting system, which ensures transparency and the good governance of natural resource revenues. Implementation of the ESTMA is helping to improve the transparency of payments made by extractive companies involved in the exploration and/or extraction of oil, gas, or minerals to all levels of government, both foreign and domestic. The new reporting system complements existing reporting requirements with a view to ensuring Canada’s framework is aligned with other G7 countries and is consistent with the emerging global standard.
Relevance to OGP values
This commitment relates to transparency, civic participation and accountability.
Deliverables in Action Plan
- 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.
Canadians will be able to access data on reportable payments made to governments in Canada and abroad.
Description of results
Natural Resources Canada has held a number of information sessions and bilateral meetings on the ESTMA throughout Canada (Vancouver, Calgary, Winnipeg, Toronto, and St. John’s) and via tele/video conference.
A video introducing the Act and its reporting requirements was posted on the ESTMA website.
On Feb 3rd, a Natural Resources Canada article was published in Rock to Road, an aggregate and roadbuilding magazine.
On June 6th, Natural Resources Canada launched a survey, shared with all ESTMA stakeholders, to better understand the issues and challenges faced by reporting entities when complying with the Act.
Over 600 inquiries on the ESTMA have been answered.
- As of June 30, 2017, over 600 companies have their reports posted on the ESTMA website.
- Throughout the year, Natural Resources Canada engaged bilaterally with governments that have implemented transparency measures to share information and lessons learned.
Next steps to June 2018
With the first year of reporting under the ESTMA completed, Natural Resources Canada will continue outreach and engagement with various stakeholders to seek feedback on reporting challenges, improve tools and guidance, and facilitate compliance (i.e., through additional targeted tele/web conferences, webinars and in-person sessions).
Results from the survey are currently being analyzed and will be posted later this year.
Natural Resources Canada will perform ongoing reviews of the posted links to ensure ongoing access to extractive sector payment information.
Additional compliance promotion and refining tools and guidance will improve the common understanding of reporting requirements, leading to more consistent and comparable data.
- Natural Resources Canada will continue to collaborate and share information with other governments that have either already passed similar legislation, or who have demonstrated an interest in increasing extractive sector transparency.