The German Government supports transparency in the raw materials sector - RWE and KfW join the Extractive Industries Transparency Initiative (EITI)

Joint press release by the Federal Ministry of Economics and Technology and the Federal Ministry of Economic Cooperation and Development

Citizens in resource-rich countries do not always benefit from state revenues accruing from the raw materials sector. The Extractive Industries Transparency Initiative (EITI) is an international initiative by governments, companies and civil society that aims to shed light on how these revenues are used.

For years, the German Government has supported the initiative both politically and financially. The Federal Ministry of Economics and Technology and the Federal Ministry of Economic Cooperation and Development have a very strong interest in recruiting German companies to support the initiative as well. At the EITI Board meeting on 15-16 April 2010 in Berlin, the Ministries were pleased to announce the first two German companies that have joined the initiative.

The German energy group RWE is the first DAX-listed company to join other leading international oil, gas and mining corporations such as Total, Shell, BP and Arcelor Mittal in the worldwide implementation of EITI's principles of transparency. In addition, the KfW Banking Group - represented by one of its members, the Deutsche Invesitions- und Entwicklungsgesellschaft (German Investment and Development Company, DEG) - will also support the initiative. As key supporters of the private sector, the KfW and DEG will give other German companies a substantial impetus to intensify their activities in support of EITI implementation around the world

The opening event of EITI's Board meeting was held on 14 April at the Temporäre Kunsthalle Berlin, a leading contemporary art space. Here, Gudrun Kopp, Parliamentary State Secretary at the Development Ministry, and Bernd Pfaffenbach, State Secretary at the Economics Ministry, emphasised EITI's significance as a decisive step toward transparency in the natural resources sector. They welcomed the decisions by the KfW Banking Group and RWE as well as the backing that the German company Graphit Kropfmühl has been giving EITI since early this year via its Netherlands-based parent company, Advanced Metallurgical Group (AMG) N.V.

Ms. Kopp stated: "We need transparent and fair standards to ensure that people in developing nations benefit from the wealth of natural resources in their countries. The EITI criteria enable civil society actors to monitor the flow of revenue from raw materials. This transparency will help to ensure that such money serves the cause of poverty reduction. Currently, 32 countries are involved in EITI implementation. This is a major success. To make sure that this positive development continues, we will keep up the same level of dedication in working together with our partners to foster transparency and good governance in the raw materials sector."

Bernd Pfaffenbach highlighted the growing sense of responsibility among German companies in the natural resources sector, many of which have deepened their understanding of EITI in intensive dialogues with the Development and Economics Ministries. He stated: "The Economics Ministry will continue to promote good governance and a sustainable raw materials strategy that will boost energy security. It is our hope that more German companies and investors will become active supporters of the initiative in the future."

EITI Chairman Peter Eigen thanked the German Government for its many years of support for the initiative. "Our initiative needs partners like Germany to ensure that the principle of transparency is anchored in raw materials markets worldwide. Through its technical support for the EITI process, the German Government is helping set standards in many resource-rich countries. At the same time, by engaging in dialogue with German industry, it is demonstrating its commitment to the principle that transparency can function only when it is jointly supported and implemented by all actors involved in the natural resources trade."