Search Climate Insights Directory
3,753 documents from International Institute for Sustainable Development
Australia: Horizontal linkages—Positive spillovers through horizontal linkages (Case Study)
Australia has leveraged its vast mineral reserves to drive broad economic growth by fostering horizontal linkages, where innovations developed for the mining sector diffuse into other industries. This process was supported by a National System of Innovation, a highly skilled workforce, and a business-friendly environment rather than strict local content mandates. A key outcome is the growth of the Mining Equipment, Technology and Services (METS) sector, which now contributes nearly 7% of GDP and employs more people than the mining sector itself. The document highlights that these spillovers occurred as a by-product of supporting the overall business environment and upstream linkages, providing a model for other resource-rich nations to achieve structural transformation.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
Australia: Upstream linkages—Fostering local procurement through regulation and local incentives
Australia employs a balanced approach to local procurement, combining national regulatory frameworks like the Australian Industry Participation (AIP) National Framework with state-level policies and Indigenous Land Use Agreements (ILUAs). Key demand-side measures include requiring AIP plans for projects exceeding AUD 500 million, while supply-side support is provided through the Supplier Access to Major Projects (SAMP) program and the ICN Gateway database. The country also aligns its education system with the needs of the Mining Equipment, Technology and Services (METS) sector and has previously used tax incentives like the Enhanced Project By-Law Scheme to reward firms implementing AIP plans.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
CANADA: NATIONAL CAPACITY SUPPORTING INDIGENOUS PEOPLES’ CAPACITY DEVELOPMENT THROUGH JOINT VENTURES
The document analyzes how joint ventures (JVs) between mining companies and Indigenous groups in Canada facilitate community capacity development and economic self-reliance. It highlights the role of Impact and Benefit Agreements (IBAs) and Aboriginal Economic Development Corporations (AEDCs) in integrating Indigenous communities into the mining supply chain and operations, while noting challenges such as limited organizational capacity and financing difficulties.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
CHILE: DIRECT EMPLOYMENT THE MINING SKILLS COUNCIL & CENTRALIZED DATA COLLECTION
The document describes the Mining Skills Council (CCM) in Chile, an industry-led hub established in 2012 to bridge the gap between mining company needs and educational training. By collecting data from companies and training providers, the CCM identifies skills shortages and forecasts human capital demands over a 10-year horizon. This intelligence is used to help education institutions improve training programs and create a system of certification for labour competencies. The case study highlights that while Chile lacks formal local content legislation, the CCM promotes direct employment by ensuring the local workforce possesses work-ready competencies, a model the document suggests is replicable in other countries regardless of whether they have state-owned mining companies.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
Chile: Horizontal linkages— Using taxation to foster horizontal linkages
Chile has avoided formal local content targets in its mining sector, instead utilizing taxes and royalties to fund a broad national innovation system. Key initiatives include Fundación Chile, which helped diversify exports into salmon and fruit, and the National Council on Innovation and Competitiveness (NCIC), which managed the Innovation for Competitiveness Fund (ICF). Additionally, the BHP Billiton World Class Suppliers program demonstrates a collaborative approach to supplier development, though it has faced challenges in scaling. While mining's share of exports fell from 89% in 1973 to 59% in 2012, the document notes that coordination failures and institutional weaknesses have sometimes hampered the impact of these policies.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
Chile: National capacity— Codelco: Maximizing mining revenues for Chile
The document analyzes Codelco, Chile's state-owned copper producer, highlighting its role as a primary source of government revenue and the consequences of prioritizing state transfers over capital reinvestment. While Codelco has contributed over USD 100 billion to national development since 1971, chronic underinvestment led to stagnating production and obsolete infrastructure. The study details the transition from full nationalization in 1971 to a mixed model allowing private joint ventures from 1992, and the 2010 governance reforms aimed at decoupling the company from political cycles to ensure its long-term viability.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
GHANA: DIRECT EMPLOYMENT COMPARING LOCAL CONTENT FRAMEWORKS IN MINING AND OVERVIEW OIL AND GAS INDUSTRIES
The document examines Ghana's efforts to increase local employment in its mining and oil and gas sectors. It contrasts the early, more generic approach of the mining sector with the more explicit, target-driven framework of the petroleum industry, highlighting the importance of predictability, phased quotas, and robust monitoring for foreign investment and local capacity building.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
Ghana: Upstream linkages—The importance of defining local procurement
Ghana employs a combination of demand-side policies, such as targeted local procurement lists and mandatory five-year procurement plans, and supply-side initiatives like the National Supplier Development Program to increase linkages between the mining sector and local businesses. While the Minerals and Mining (General) Regulations LI 2173 provide a structured framework with financial penalties for non-compliance, the document highlights a critical lack of a precise definition for 'origin' and 'local value added' for goods. This ambiguity allows foreign firms to qualify as local simply by registering under Ghanaian law, potentially undermining industrialization goals. The government has demonstrated flexibility by iteratively expanding its local procurement list, which grew from eight products in 2014 to a projected 29 by late 2017.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
GUINEA: HORIZONTAL LINKAGES CHALLENGES OF A LINKAGES-DRIVEN APPROACH TO MINING INFRASTRUCTURE
The document analyzes the Simandou iron ore project in Guinea, where the government sought to leverage mining infrastructure to create 'horizontal linkages' for broader economic development via the Southern Guinea Growth Corridor (SGGC). While the project promised to double Guinea's GDP through a 650km railway and deep-water port, it faced immense capital costs (estimated over USD 15 billion) and a more economical alternative route through Liberia. The case highlights the tension between national development goals and project financial feasibility, noting that requiring multipurpose infrastructure can lower investment returns and increase risk.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
NIGERIA: NATIONAL CAPACITY BUILDING CAPACITY IN THE OIL SECTOR THROUGH “INDIGENIZATION” POLICIES
The document examines Nigeria's struggle to reduce its oil sector's dependence on foreign capital and expertise. It details the evolution from early nationalization attempts via the NNOC/NNPC to the introduction of private indigenous company incentives and the 2010 Nigerian Oil and Gas Industry Content Development Act, highlighting how corruption, lack of financing, and technical gaps have hindered these goals.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
Norway: Horizontal linkages—Local context as the main driver for horizontal linkages
The document analyzes Norway's strategic management of its petroleum resources to avoid the 'resource curse' and foster a competitive high-tech sector. Key mechanisms included the creation of Statoil in 1972 to build independent technological capacity and the establishment of the Government Pension Fund Global in 1990 to manage revenue volatility. The government implemented local content requirements, such as mandating that 50% of petroleum R&D be conducted domestically, and forced collaboration between multinationals and local universities. These efforts transformed Norwegian manufacturing into a specialized engineering and supply industry, with the oil and gas sector serving as an enabling market for broader high-tech innovations in telecommunications, satellites, and automation. The study concludes that Norway's success was predicated on its pre-existing skills base, strong government enforcement, and a long-term approach to innovation.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
Norway: National capacity—Statoil and the Norwegian oil success story
The document analyzes the role of Statoil in Norway's economic development, highlighting how the state-owned enterprise was used to acquire technological expertise, manage multinational oil companies, and develop a high value-added domestic supply industry. It details the institutional evolution of Statoil, including the separation of regulatory and operational powers and the eventual transition to a publicly traded company, as a means to avoid oil-dependency and maximize state rent.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
Papua New Guinea: Direct employment—Women and the extractives industry
The document analyzes the challenges and initiatives related to women's participation in Papua New Guinea's extractives sector. It highlights the Women in Mining (WIM) initiative and the WIM National Action Plan 2007–2012 as strategic efforts to address gender inequality and empower women in remote areas. While some private sector programs, such as at the Lihir mine, have successfully increased female employment, the report notes that overall economic growth from minerals has not significantly reduced income poverty or social inequalities in the country.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
Saudi Arabia: National capacity—Saudi Aramco—a state-owned global oil giant
The document analyzes Saudi Aramco as a state-owned enterprise (SOE) that has successfully transitioned from American ownership to a globally competitive national oil company. It highlights the importance of operational autonomy and gradual nationalization in maintaining efficiency, while noting the risks associated with the company's economic dominance. The study also details Saudi Aramco's efforts to diversify the Saudi economy through industrial expansion and the In-Kingdom Total Value Add (IKTVA) program to increase localization.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
CASE STUDY IGF Guidance For Governments: Leveraging Local Content Decisions for Sustainable Development
Singapore established itself as a regional petroleum trading hub by combining a strategic geographical location with a 'twin-track' industrial strategy of minimal regulation and strong institutional support. Starting with oil refining in the 1960s, the government transitioned toward the petrochemicals sector in the 1980s via the 'cluster approach' at the Jurong Island Export Processing Zone. While facing challenges from regional competition, land scarcity, and environmental concerns, Singapore has maintained its edge through massive infrastructure projects, such as underground rock caverns for storage, and proactive policy adaptation.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
SOUTH AFRICA: DIRECT EMPLOYMENT BROAD-BASED SOCIO-ECONOMIC EMPOWERMENT CHARTER; FOCUS ON HISTORICALLY DISADVANTAGED SOUTH AFRICANS (HDSAS)
The document analyzes the Broad-Based Black Economic Empowerment (B-BBEE) strategy and the 2010 Mining Charter, which mandated that by 2014, mining companies be 40% owned by Historically Disadvantaged South Africans (HDSAs) and have HDSAs in 40% of management roles. While a 2015 report indicated the industry generally exceeded black representation targets and met skills development spending goals, the framework faced challenges including complex targets and the capture of benefits by politically connected elites. A 2017 update with tougher requirements was suspended following industry criticism and fears of reduced foreign investment, as evidenced by South Africa's drop to 13th place among African mining investment destinations.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
Zambia: Upstream linkages— Limits to the effectiveness in government supply-side interventions
The document examines Zambia's efforts to leverage local content in its mining industry through policies like the Mines and Minerals Development Act and the Citizens Economic Empowerment Act. It highlights a critical gap: while service companies are clearly defined, there is no specific definition of the value-added required for goods to be considered 'made in Zambia'. This omission, combined with a lack of specific targets and quotas, has hindered enforcement and compliance. Consequently, despite various supplier development initiatives such as the IFC Copperbelt SME Suppliers Development Program and the Zambia Mining Local Content Initiative, up to 95% of goods and services locally procured by the mining industry remain imported.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Case study
Republic of Fiji National Adaptation Plan
The Republic of Fiji National Adaptation Plan (2018) is a strategic framework designed to transition the country toward a climate-resilient development pathway. It identifies 160 prioritised adaptation measures across ten components: five systemic (climate information, horizontal integration, vertical integration, awareness, and resource mobilisation) and five sectoral (food security, health, human settlements, infrastructure, and biodiversity). The plan emphasizes a 'theory of change' that combines the removal of adaptation barriers with the mitigation of sectoral risks, grounded in ecosystem-based and gender- and human rights-based approaches. Key goals include mainstreaming climate risk into all levels of government decision-making, improving the availability of high-resolution climate data, and enhancing the resilience of critical infrastructure and food systems to combat hazards such as tropical cyclones, sea-level rise, and flooding.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Report
LIMITING THE IMPACT OF EXCESSIVE INTEREST DEDUCTIONS ON MINING REVENUE
The document examines how multinational enterprises (MNEs) in the mining sector use debt financing to shift profits from host countries to offshore jurisdictions. It details common base erosion techniques—such as debt 'push downs', interest rate markups, and hybrid instruments—and evaluates various policy responses. The primary recommendation is the implementation of BEPS Action 4, which links net interest deductions to a fixed ratio of taxable EBITDA (between 10% and 30%). The guide also discusses complementary measures including thin capitalisation rules, interest withholding tax (IWT), and transfer pricing regulations, while emphasizing the need to balance tax base protection with the maintenance of an attractive investment climate.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Guide
MONITORING THE VALUE OF MINERAL EXPORTS: POLICY OPTIONS FOR GOVERNMENTS
The document outlines a risk-based framework for governments to oversee the valuation of mineral exports, focusing on the technical processes of sampling, preparation, and analytical testing. It proposes three primary policy responses—direct measurement, monitoring company processes, or a hybrid approach—depending on the risk of undervaluation. The guide details the costs and requirements for establishing ISO-accredited laboratories, suggests various financing models, and recommends adopting international reporting standards like JORC or SAMREC to ensure transparency and legal defensibility in tax and royalty collection.
AI-generated
This summary is written by a language model reading the source document. It is not the publisher's words and is not a substitute for the original.
Document type: Guide