Green Economy in a Blue World-Full Report

2.6 Economic Opportunities None of the negative economic consequences of resource development outlined above are inevitable. Examples such as Botswana, Trinidad and Tobago and, historically, Canada and Australia demonstrate that it is possible to use natural resource wealth to transform society for positive ends. Botswana today – with mineral exports comprising almost 90 per cent of the country’s total exports – has one of the highest rates of GDP per capita in sub-Saharan Africa and the smallest number of people living below the poverty line. Looking at these and other successful countries, what is clear is the importance of ensuring successful oversight of mining activity (Ballard & Banks, 2003). This can be achieved by well-enforced legislative and regulatory frameworks, strong institutions with adequate capacity, and good governance according to widely-shared principles. A key success factor in managing mineral wealth is to separate the decision of how much to spend from on what it should be spent . Some of the most successful Funds have achieved this by transferring a single amount to the overall State Budget. Budget allocations and spending decisions are then governed through the regular budgetary process. In fact, some argue that a Fund which would develop its own spending programme would divert important spending decisions and priorities to non- elected officials. As the amounts involved may become significant this would basically create a ‘state-within-a-state’. The remaining question is therefore how much to spend. The level of discretion should be related to the country’s level of governance and the strength of its institutions. In theory, the amount spent each year could be left entirely to the discretion of policy-makers, current and future, to be set indicatively (as in Norway) or be determined entirely by law (such as the recent cases of Sao-Tome andTimor-Leste.) recognizing that few countries benefit from the same level of good governance as Norway. 3 Enabling Conditions While States are given legal rights over deep-sea minerals by the UNConvention on the Lawof the Sea, the Convention and other international and regional instruments also impose obligations on State parties. These legal standards apply regardless of a State’s individual economic status or capacity, and include obligations to protect and preserve marine resources and marine scientific research, to conserve living marine resources, habitats and rare or fragile ecosystems, to monitor risks or effects

of pollution, and to minimize pollution and accidents to the fullest possible extent (UNCLOS Articles 61, 117, 192, 194, 204). If States do not fulfil their obligations under international law they will be liable for any damage occurring as a result (UNCLOS Articles 139, 235). States must also take measures to secure compliance with these international law standards by any third- party private entities within their control – that is, undertaking mining activities on that State’s continental shelf, or in the International Seabed Area under the State’s sponsorship. The implementation of a robust national legal framework to regulate deep-sea mining, before mining activity commences, will greatly assist a State in the effective discharge of its obligations under international law. international obligations, States must conduct appropriate checks and research into the contractor and its proposed work plan, before issuing a permit for any mining activity. The degree of due diligence may vary according to the risks of the activity (which will depend on the area, activity, mineral, and technology to be used). At the application stage, the State will wish to review evidence of the company’s ability to perform mining activities in a timely, safe and efficient manner (company financial information, a plan of work, insurance documentation). The regulatory regime should require the mining applicant to conduct an Environmental Impact Assessment (EIA) as soon as the mining project is sufficiently defined to permit meaningful analysis, and before any mining activity takes place (UNCLOS Article 206). The outcome of that EIA will inform the State’s decision as to whether mining can proceed, and if so, within what parameters. Compliance : the regulatory regime must establish clearly the rules with which entities in the State’s control or jurisdiction must comply. This can be done by way of legislation, and by the issue of a licence by the State to the mining company. The licence will give express rights to the company for mining activity in the designated area, setting operational parameters and performance standards. It will contain undertakings, guarantees and indemnities on the part of the contractor, and penalties for breaches. Monitoring : international legal requirements would not be met by a State merely putting rules and measures in place: it must also exercise further vigilance in monitoring these (Pulp Mills case, 2010). This will require a national regulating body. The regulator may 3.1 Attributes of an effective regulatory regime Due diligence : to meet

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