Against the backdrop of the urgent realities of climate change, the pandemic, and the decline in oil prices, the necessity for oil- and gas-producing countries to immediately engage in the transition toward sustainable energy sources has come to the fore. This pivot must be central to a revamped natural resource governance field now and in the years to come. However, as needed as the transition is, it raises its own set of socio-economic challenges. It is imperative that the natural resource governance field addresses the issues which will result from reduced extractive revenue, stranded assets, and related risks.  Moreover, the economic consequences of the transition will fall asymmetrically—with dramatic negative impacts on countries and communities dependent on oil, gas and coal revenues, and a rise in opportunities for those rich in transition minerals like copper, cobalt, and lithium.

Just as misgovernance has impeded efforts in the past to translate extraction into development, it now threatens to stymie countries’ efforts to grapple with the decline of fossil fuels, take advantage of technological progress, and build economic resiliency in a low-carbon future. Unless critical issues of corruption, state capture, and mismanagement are addressed, a just energy transition will be impossible.

Consequently, activists, decisionmakers, funders, institutions, and researchers must work to realize a transition to a green economy in a way that does not widen inequality gaps either between resource-rich countries and others or between individuals in resource-rich countries.

Because many resource-rich countries struggle with effective governance, the natural resource governance field should support them with initiatives that build on past efforts and pivot to respond to current challenges. The central role of those working to improve governance in resource-rich countries will continue as those nations transition into a new energy reality—one where there is a decarbonization imperative.

Read the full article about resource governance and the energy transition by Victoria Bassetti, Norman Eisen, Michael Jarvis, Suneeta Kaimal, Daniel Kaufmann, Kelsey Landau, Robin J. Lewis, Allison Merkel, Mario Picon, and Erica Westenberg at Brookings