The volatile and at times unreliable nature of natural resource revenues has implications on revenue management and spending. Two principal concerns underlie the challenge of transforming natural finite assets into human, social and physical capital: managing the counter-cyclical nature of resource revenue flows to ensure that there is a consistent level of resources available for spending; and ensuring productive gains from the funds spent, in-line with the 2030 Sustainable Development Agenda.
The outputs below provide resource-rich developing countries with tools to improve their capacity to manage and spend natural resource revenues. This includes guidance on:
• how to ensure budget sustainability to support consistent spending over time;
• how to manage the trade-off between spending more now versus saving for future generations;
• mechanisms for the mobilisation of natural resource revenues for sustainable development; and
• how sovereign wealth funds can become climate-aligned commercial investors.
Co-chairs: Chile and Kazakhstan
The Role of Sovereign and Strategic Investment Funds in the Low-carbon Transition
Sovereign wealth funds manage a large share of the world’s invested capital. The action or inaction of these funds on climate finance is of crucial importance to the world’s ability to reach the goals of the Paris Agreement. However, sovereign wealth funds have so far played a very limited role in climate finance. This report provides guidance on how governments can support their sovereign wealth funds in becoming climate-aligned commercial investors. The establishment of synergies between sovereign wealth funds and strategic investment funds can help scale up investments in clean-energy infrastructure.
Using Extractive Revenues for Sustainable Development: Policy Guidance for Resource-rich Countries
Transforming natural finite assets into human, social and physical capital is a key challenge for natural resource-rich countries. This report distils lessons from the OECD Policy Dialogue on Natural Resource-based Development on natural resource revenue management and spending for sustainable development. This includes a guide on how natural resource-rich countries can ensure budget sustainability to support consistent spending over time. Further analysis focuses on the management of spending versus saving and the effectiveness of different spending mechanisms for sustainable development, making recommendations to address common challenges.
Back to the Policy Dialogue on Natural Resource-based Development (PD-NR) homepage