At its Fifth High-Level Meeting (HLM) held on 21 May 2019, the Members of the Governing Board invited the OECD Development Centre to “help design transformational development strategies aligned with the 2030 Agenda focusing on the sustainable transition of natural resource-rich developing countries towards a low-carbon economy and better integration into global value chains”. The Development Centre responded to this request, by refocussing the activities of the Policy Dialogue on Natural Resource-based Development towards scaling up work to support the low-carbon transition in resource-rich countries. The objective is to identify economically shock-proof and socially viable policy options available to extractive-based economies.

Under the leadership of the European Commission and Nigeria, a multi-stakeholder Steering Committee, established in December 2020, provided guidance and supported the development of the Equitable Framework and Finance for Extractive-based Countries in Transition (EFFECT). The Steering Committee comprised experts and representatives from governments from the OECD, its Development Centre, and partner countries, international organisations, industry (including extractives), civil society, and development finance institutions.

EFFECT is the result of an open, intense, and enriching multi-stakeholder consultation process hosted by the Development Centre between January 2021 and September 2022. An initial draft, focusing primarily on Pillar 1: Decarbonisation of extractives and managing uncertainties, was presented for discussion at the Sixteenth Plenary Meeting of the Policy Dialogue on 29 and 30 June 2021. After this, EFFECT was continuously revised and improved, with changes discussed and agreed during monthly meetings of the Steering Committee. A revised version of Pillar 1 and Pillar 2: Sustainable fossil fuel exit strategies and just transition plans was discussed at the Seventeenth Plenary Meeting of the Policy Dialogue on 14 and 15 December 2021. The full package of all three Pillars, with a particular focus on Pillar 3: Systemic change and economy-wide decarbonisation was presented at the Eighteenth Plenary Meeting of the Policy Dialogue on 27 and 28 June 2022. An advanced draft was submitted for on-line public consultation during the period 17 June to 7 July 2022, and comments received were reviewed by the Steering Committee.

After its high-level launch at COP27, hosted by the Canadian Pavilion in Sharm El-Sheikh, Egypt on 15 November 2022, EFFECT will support policy dialogues and peer learning on the cross-border and equity dimensions of the low-carbon transition, the development of tailored low-carbon transition roadmaps in developing and emerging producers as well as the shaping of transformative and just transition partnerships.

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