Takeaways on tackling corruption challenges for a just transition: implications for renewable energy

Speakers: Mark Robinson, Executive Director of the Extractive Industries Transparency Initiative and Maja de Vibe, Senior Vice President Sustainability, Governance and Compliance at Statkraft.

Panellists discussants: Luca Maiotti, Policy Analyst, OECD; Irene Lucius, Regional Conservation Director, WWF Central and Eastern Europe; Alexia Ruvoletto, Head of Secretariat, Solar Stewardship Initiative.

• The public launch of the paper highlighted findings on governance and corruption risks from a recent report based on a review of the evidence and a survey conducted among companies operating in solar, wind, hydropower, and green hydrogen sectors. The results revealed a concerning trend: although current risks are relatively low, they are expected to escalate significantly as the sector expands. Delaying discussions on governance and corruption in this sector could lead to similar practices and mistakes witnessed in the extractive sector in the past.

• Alongside problems around community consultation, licensing and permitting, and the potential misuse of tax incentives and subsidies, a critical issue that must be addressed is the lack of transparency regarding the beneficial ownership of partners, contractors, and suppliers. A recent report from EITI and Open Ownership provides valuable insights on how to leverage beneficial ownership information to promote accountable governance in the renewable energy sector. For instance, utilising beneficial ownership data can enhance licensing processes

• The report proposes a range of measures designed to tackle these risks, drawing on the experience of the Extractive Industries Transparency Initiative. Consideration could be given to the development of shared standards and a common platform based on a multi-stakeholder approach, and to learning lessons from best practices among renewable energy companies.

• It is important that the development of renewable energy projects does not come at the expense of vital ecosystem goods and services. To tackle this, WWF Central and Eastern Europe is actively campaigning against threats to rivers and wetlands, focusing on the risks posed by poorly planned dams and infrastructure. Irene Lucius has raised the alarm about a dangerous hydropower project on the Danube supported by the European Commission. The project involves the construction of a dam and power plant between Nikopol, Bulgaria, and Turnu Măgurele, Romania, posing serious risks to the river's ecosystem and surrounding communities.

• The Solar Stewardship Initiative (SSI) was created to address growing concerns about transparency in the solar energy sector. This pioneering initiative aims to set a new standard for environmental, social, and governance (ESG) practices. Their purpose is to set clear expectations, rigorous traceability protocols, and strengthened confidence in the materials and products used in the solar supply chain, which fosters trust among consumers, investors, and other stakeholders. The organisation has initiated a public consultation on a first draft of the Supply Chain Traceability Standard as part of its ongoing standards development work.

The full recording of the 09 October Plenary session is available here: