Compliance Mechanisms

1
Compliance Mechanisms

• Compliance role
• Advisory role
• Ombudsman role
• PLUS Raise awareness of rights ensure respect
• Characteristics independent, independent
  funding, high standards, binding, accessible and
  transparent
• Among ECAs EDC, JBIC OPIC (CAO, OECD)

2
Export Development Canadas Compliance Mechanism

• Established through Act governing EDC
• Plays a compliance/advisor/ombudsman role
• Mandate EDCs environmental, social, human
  rights and business ethics policies
• Independent? High standards? Binding? Accessible?
  Transparent and accountable?

3
Halifax Initiatives complaint

• Cernavoda 2 - 300 million loan guarantee
• Halifax Initiative and CRBM filed a complaint
• Breached its disclosure policy (no EIA)
• Key omission in all three EIAs
• Failure to meet host country requirements
  consultation, incomplete EIA
• Breach of Espoo Convention transboundary impacts

4
Outcome of the complaint

• EDC fully compliant with all of its policies
• Very little reporting out stopped by Board
• No effort by CO to correct weak policies
• None of the recommendations taken up
• 12 months wait

5
Lessons Learned Opportunities and Challenges

• Dependent on the strength of institutional
  policies and key characteristics
• Few ECAs with COs little chance for leverage
• Despite failures, could push for COs in all ECAs
• Would have potential internal advocates, lessons
  learned
• Limited approach
• May change policies, due diligence, BUT rarely
  stops projects
• Resources ? Institution vs. Community (e.g.
  monitoring)
• Compliance or accountability?