Recommendations to the European Parliament

Public Hearing: The curse of natural resources in Central Africa: Can the EU contribute to fairer economic relations? Recommendations to the European Parliament

ENGLISH VERSION Presented on December 9, 2009 by the following members of the Belgian Natural Resources Network (RBRN): -Broederlijk Delen -OCIPE -IPIS -CADTM -Greenpeace -Justice and Peace -11.11.11. -CNCD And by Fatal Transactions. Recommendations: A. For natural resources to be managed in a transparent and sustainable manner 1. The EU must include transparency, good governance and the principle of free, prior and informed consent of local populations in all its policies and legal agreements vis-à-vis countries rich in natural resources (such as the Cotonou Agreements, trade and investment agreements, Country Strategies, National Indicative Programs, or Corporate Social Responsibility). 2. More specifically, the EU must encourage membership of the EITI by partner countries, Member States and all European companies active in the extractive sector. 3. The EU must make country-by-country financial reporting compulsory for European companies in this sector via the Transparency Directive 2004/109/EC, which will be reviewed in 2010. The EU must also ensure that the revision of the IFRS 8 standard by the International Accounting Standards Bureau and the proposal for a new Extractive Industries standard (replacing IFRS 6) are opportunities to force companies to submit, in their annual report, accounting information broken down country- by country. B. So that the exploitation of minerals stops fueling armed conflicts in the Great Lakes Region 1. The EU must support the establishment of certification mechanisms identifying the origin of minerals in order to allow economic actors to differentiate the “own” resources of those financing conflicts and to force them to market only certified minerals. To this end: – The European Parliament should encourage the European Commission to use its participation in the Kimberley Process to encourage and assist the governments of the Great Lakes Region to improve internal control of diamond mining and trade. – Concerning other minerals likely to fuel conflicts (gold, coltan, cassiterite and wolframite), the European Parliament must encourage the European Commission and the Member States to urgently contribute to the establishment of certification mechanisms. – The EU must support the implementation of regional initiatives in this area. 2. The EU must strengthen the capacities of local institutions to formalize, regulate and develop the mining sector with a view to promoting legal trade in minerals. To do this, the EU must provide them with technical and financial support, among other things through investments enabling the on-site processing of minerals and the creation of added value for the benefit of national economies. 3. the European Union must ensure the application of sanctions against European companies involved in the illegal exploitation and/or trade of natural resources. The EU must therefore investigate and bring to justice the European companies identified, in particular by the United Nations Panel of Experts on the Illegal Exploitation of Natural Resources, as being involved in such illegal practices. C. To strengthen the social responsibility of European companies active abroad in the natural resources sector 1. The EU must adopt a binding directive on corporate social responsibility providing for the establishment of extra-territorial jurisdiction of the judge European, in the interest of the host countries and their populations as well as the companies themselves currently faced with great legal insecurity in this area given the diversity of existing frameworks. 2. The EU must include, in this legislation, duty of care, the responsibility of parent companies for their subsidiaries and their entire supply chain and mandatory social and environmental reporting. 3. The EU must encourage the adoption of binding and coherent initiatives in this direction within international institutions, including the United Nations, and support regional initiatives, in particular that carried out within the International Conference of the Greater Region. Lakes in the matter. D. For the management of natural resources to promote development in the South 1. On the basis of the European Parliament resolution of January 13, 2005 (P6_TA(2005)0008), the EU must commit to canceling bilateral debts without conditionality countries of the South in order to guarantee the economic sovereignty of countries and to take into account the ecological debt accumulated by industrialized countries. The EU must also advocate for this within international bodies. 2. The EU must ensure consistency between all its policies and the development objectives it has set for itself. The European Parliament must therefore ensure that the EU brings its natural resource supply policy (e.g. Raw Materials Initiative/COM(2008)699) into line with its development objectives for countries. producers of raw materials. Contact within the Belgian Natural Resources Network (RBRN): – Broederlijk Delen: Tamira GUNZBURG, Tamira.Gunzburg@broederlijkdelen.be – OCIPE: Emmanuelle DEVUYST, rpan@ocipe.info – IPIS: Jeroen CUVELIER, jeroen.cuvelier@ipisresearch.be – CADTM: Renaud VIVIEN, renaud@cadtm.org – Greenpeace: Natacha ADAM, natacha.adam@be.greenpeace.org – Justice and Peace: Frédéric TRIEST, frederic.triest@justicepaix.be – 11.11.11. : Koen WARMENBOL, koen.warmenbol@11.be – CNCD: Nicolas VAN NUFFEL, nicolas.vannuffel@cncd.be English

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