Energy and natural resources

What we do

The Commonwealth Natural Resources Programme supports member countries in the sustainable development and inclusive, equitable, transparent and effective governance of natural resources (including minerals, oil, gas and renewables), energy sector reforms and managing the energy transition. Support is provided through bi-lateral, multi-lateral and Pan-Commonwealth technical assistance projects, capacity building initiatives including knowledge networks, and country-led collaborations with partners.

Why it matters

Natural resources are importance to many Commonwealth countries. For instance, all 21 member states in Africa are actively engaged in petroleum and mining sectors, and more than 60 per cent are resource dependent – that is, natural resources contribute more than 40 per cent of exports or 50 per cent of government revenue, or natural resource rents constitute more than 10 per cent of GDP.

Natural resources are also of particular concern to many small states and Least Developed Countries (LDCs), as resource dependency is an added source of vulnerability to exogenous shocks and environmental disasters. Currently almost 30 per cent of small states and half of LDCs in the Commonwealth are resource dependent.

How we deliver sustainable impact

We provide tailored technical support to member states on policy and strategy, taxation and revenue management, legal and regulatory frameworks (economic, social, environmental), legal drafting of laws, regulations, model agreements, managing the energy transition, decarbonisation and capacity-building initiatives including knowledge products and networks. Drawing on our extensive experience, we also support development of international frameworks.

75%

of Commonwealth countries have been beneficiaries of natural resources support

95%

of natural resources technical assistance has been to small states and LDCs

20+

Countries supported in over 30 negotiations with companies

70%

Commonwealth countries in effective governance of their natural resources and trained thousands of government officials

10+

countries have been supported in investment promotions and licensing rounds

20+

countries, because of our guidance, have established policies, laws and fiscal frameworks

Energy and minerals (oil, gas, mining, renewables)

If managed properly, the extractives sector is one of the few economic sectors which can, lift a country out of underdevelopment. Unfortunately, many resource-rich countries have suffered from the ‘resource-curse’ where development of the sector has been associated with poor economic and development outcomes including high levels of corruption, conflict and environmental problems. Effective policies, robust governance, are essential in mitigating these effects and ensuring sustainable development. For over 30 years, the Commonwealth Secretariat has been assisting member countries with:

Policy and Strategy: Formulating petroleum and mineral resource development policies and strategies.
Regulatory Frameworks: Developing legal, fiscal, environmental, and institutional mechanisms based on international best practices, including drafting new laws, regulations, and model agreements. This also includes implementation of renewable development strategies and programmes as well as negotiations of independent power projects.
Revenue Management: Establishing mechanisms to stabilise budget inflows, and balance immediate socio-economic needs with future provisions.
In-Country Value Addition: Leveraging resource development for broader economic benefits and industrialisation, including local content policies and legislation.
Deep Sea Mining: Providing expertise consultative, legislative and regulatory frameworks for the emerging deep-sea mining industry.

In the Commonwealth there are 25 resource-rich countries, where mining sectors are significant contributors to the economy, government revenue, foreign exchange and employment.

Beneficiaries of our Natural Resources Programme

Africa	Asia	Caribbean & Americas	Europe	Pacific
Botswana	Bangladesh	The Bahamas	Cyprus	Cook Islands
Eswatini	India	Barbados	Malta	Fiji
The Gambia	Pakistan	Belize		Kiribati
Ghana	Sri Lanka	Dominica		Nauru
Kenya		Grenada		Papua New Guinea
Lesotho		Guyana		Samoa
Malawi		Jamaica		Solomon Islands
Mauritius				Tonga
Mozambique				Tuvalu
Namibia				Vanuatu
Rwanda
Seychelles
Sierra Leone
South Africa
Tanzania
Uganda
Zambia

The 25 resource-rich Commonwealth countries

*Significant oil and gas discoveries

The number of resource-dependent Commonwealth countries is set to increase within the next decade given the surge in demand for critical minerals, such as cobalt, copper, and lithium which are needed in renewable energy technologies, and the development of new oil and gas discoveries.

We are a trusted source of world-leading expertise for Commonwealth member countries on developing regulatory and financial frameworks for the emerging deep-sea mining industry. Deep-sea minerals, rich in metals such as copper, nickel, cobalt, gold, and rare earth elements, are found in the deepest, most under-explored parts of the Earth.

Deep-sea mining is an emerging sector, generating significant commercial and public interest, despite facing technical and economic challenges that have hindered its operationalisation. The unusual level of attention on this emerging industry creates a unique opportunity for Commonwealth member countries to establish best-practice regulatory and fiscal frameworks from the outset.

The Secretariat's work focuses on assisting governments in making informed, consultative decisions about engaging with deep-sea mineral activities, while ensuring they are managed in accordance with progressive "good governance" standards. This includes considering the scientific, social, and economic implications of such activities

Our technical assistance is guided by sustainable development principles and the Commonwealth Charter's emphasis on maintaining ocean health and protecting citizens' rights as resource owners. By taking a proactive, consultative approach to regulating deep-sea mining, Commonwealth member countries can ensure that this industry is developed in a responsible, equitable manner.

Ensuring a just energy transition requires balancing development, carbon emission reduction and environment protection. Good governance is essential in achieving this balance, as it provides critical regulations to ensure policy coherence, minimize economic and social disruptions, avoid stranded assets, and maximise benefits from the circular economy and new value chains.

Climate and Environment

The mining and petroleum sectors are significant contributors to global greenhouse gas (GHG) emissions. The widening emissions gap necessitates accelerated mitigation efforts to achieve the goals of the Paris Agreement. Effective policy and regulatory frameworks governing these sectors' GHG emissions are powerful public policy tools for addressing the global climate crisis. For example, mining is responsible for around 7% of annual forest loss in developing countries. Robust regulations and enforcement are required to mitigate these impacts.

Development

Wisely managed natural resources can lead to economic growth and poverty reduction. They can provide foreign exchange and revenues to service debt, address the loss and damage of climate change, and improve development outcomes. However, most resource-rich countries underperform on social, environmental, and economic measures and experience high levels of corruption, inequality, and conflict.

Good governance is recognised as instrumental in avoiding the "resource curse" and generating positive development outcomes. Effective natural resource management can provide a cornerstone for climate-resilient, inclusive sustainable development, improving the prosperity of all citizens.

Just energy transition

Each country’s energy transition pathway will reflect its national policies, circumstances and nationally determined contributions under the Paris Agreement. The global energy transition also has additional risks and opportunities for mining and petroleum producing countries. Good governance is important to ensure policy coherence, minimise economic and social disruptions, avoid stranded assets and maximise benefits from the circular economy and new value chains.

The effective and transparent management of natural resources can, in many countries, provide a cornerstone of climate-resilient, inclusive sustainable development which can improve the prosperity of all citizens.

Learn more about the Commonwealth Sustainable Energy Transition Agenda

The Commonwealth Secretariat is a part of an international Methane Action Group, drawing on its extensive experience in assisting countries, including Belize, Ghana, Namibia, Tanzania and Uganda, to tackle methane emissions in the oil and gas sector.

Methane, the main greenhouse gas after carbon dioxide, is responsible for over a third of the current global temperature rise. It is more than 80 times more powerful in trapping heat than carbon dioxide in the short term.

Cutting methane emissions is one of the fastest and most cost-effective ways of slowing global heating, according to the Intergovernmental Panel on Climate Change report.

A reduction of 45 per cent by 2030 is necessary to keep the Paris Climate Agreement’s target of limiting global heating to 1.5 degrees Celsius within reach.

Critical minerals are essential components of modern technologies and industries, including renewable energy, electronics, transportation, and construction. As the world transitions to a low-carbon economy, the demand for these minerals is expected to surge significantly in the coming years.

The number of resource-dependent Commonwealth countries is set to increase within the next decade given the surge in demand for critical minerals, such as cobalt, copper, and lithium which are needed in renewable energy technologies, and the development of new oil and gas discoveries.

This shift in global demand presents both opportunities and challenges for Commonwealth member states. On one hand, it provides a chance for countries to diversify their economies, create jobs, and generate revenue from responsible extractives industries. On the other hand, it also poses risks of environmental degradation, social unrest, and economic instability if not managed sustainably.

As such, the Commonwealth Secretariat plays a crucial role in supporting its member states in developing their critical mineral resources responsibly. Through technical assistance, policy guidance, capacity-building programs and helps governments navigate these complexities and ensure that the benefits of extractives industries are shared equitably among all stakeholders.

We engage with international organisations, specialist think-tanks, and regional agencies to foster knowledge-sharing and to develop and promote international best practices and standards.