Environmental management for extractives.

This paper examines policies that manage the ecological costs and maximise the socio-economic benefits of extractive industries


The purpose of this paper is to provide evidence on the types of policies that have been put in place by developing and developed countries to manage the ecological costs and maximise the socio-economic benefits of extractive industries (EI). Through this research it is hoped to provide a better understanding of the various pros and cons of different policies based on real experience, particularly with regard to growth and poverty reduction.

The focus is on host country regulatory initiatives, meaning regulations from the jurisdiction within which extraction is taking place rather than those implemented to regulate companies working abroad. The types of institution considered are both ‘hard’ (e.g. legislation) and ‘soft’ (e.g. public-private partnerships).

After the introduction, Section 2 briefly describes the potential ecological and socio-economic impacts of EI. Section 3 discusses how weak political institutions, coupled with a dependence on natural resources, can lead to sub-optimal results for national economic development and the reduction of poverty. Section 4 provides a rationale and policy examples for each of six focus areas. The conclusion in Section 5 reiterates the range of policy options available to developing countries and suggests a range of opportunities for developing country governments to proactively engage with extractives firms. Finally, Sections 6 and 7 provide recommendations for further reading and a substantial bibliography.


Bloomfield, M.J.; Denison, M. Environmental management for extractives. EPS-PEAKS, UK (2012) 31 pp.

Environmental management for extractives.

Published 1 January 2012