BF-FieldManual-FEB13 -3.pdf - Bertelsmann Foundation

Section 1504 could fundamentallytransform the way that US-listed oil, gasand mining companies operate in thirdcountries. The regulation stipulatesthat all such companies publicly listedon the New York Stock Exchange willbe required to annually disclose to theSecurities and Exchange Commission(SEC) all payments made to national,state and local governments on aproject-by-project basis. A modulardatabase of these disclosures willserve civil society groups who monitorthe flow of money to governments inan effort to dry up the dark financialpools that fund endemic corruptionin many resource-rich countries. Thepromulgation of rules by the SEC inAugust 2012 sets the stage for a newbusiness culture between extractiveindustries and payments made to publicinstitutions and officials. The EuropeanCommission, for its part, has introducedamendments to the Accounting Directiveand Transparency Directive that wouldreplicate the provisions of the Cardin-Lugar amendment. It is currently undernegotiation among the Commission,the European Parliament and memberstates, and the Parliament is expected tovote on it in early 2013.The US and EU should work togetherto guarantee that the implementationof Section 1504 and the revisedTransparency and AccountingDirectives creates a robust regimethat allows payment tracking and hascomplementary project definitions,payment thresholds and exemptionsso that the laws are not subject toregulatory arbitrage. They should consulton disclosure practices to make surethat they are interoperable across theAtlantic and can be swiftly implementedand enforced in the coming years.Together, the EU and US laws have thepotential to transform the way businessis done in extractive industries and helpemancipate developing countries fromthe so-called “resource curse”.4. Highlight the US’s domesticclimate/energy successes to aEuropean audience by engaging ina more active trans-Atlantic publicdiplomacy:European policymakers and citizenstend to neglect the US’s progress onenergy issues and view it as an obstacleto international climate negotiations.Often this view is fostered by one-sidedmedia coverage in Europe. There is astrong need for reshaping the narrativeby developing media engagement plans;Europe has already done this, and theUS should follow suit. An annual trans-Atlantic media dialogue could invite keyEuropean economic reporters to the USto report on some of the positive climate/energy stories happening at the stateand local levels. Potential focus areasinclude the greening of the US military,the recent EPA greenhouse gas limitsfor new power plants, or the greenhousegas emissions system in California. USembassies throughout Europe shouldfollow up regularly with journalists andnetwork with European media outlets.Embassy staff should also acquire betterknowledge of some of the progressiveenergy/climate trends now seen inthe US.5. Agree on new visa provisionsthat allow US businesses to attractand recruit graduates withadvanced degrees in science,technology, engineering andmathematics (STEM):As progress on climate and energypolicy is always subject to technologicaladvancement, there is also an increasedneed for further trans-Atlanticcooperation in climate science andenergy technology research. TheUS should actively strengthen thecooperation on these issues betweenUS and European research universities,labs and companies by making it easierfor recent European graduates from USinstitutions to gain US work permitsand visas that last longer than the oneyear allotted to F-1 visa holders. A socalled“start-up visa” should be madeavailable to foreign energy/climateentrepreneurs to allow for the necessaryplanning security. 17 5 5Energy & Climate Change