Economic Development

Managing Natural Resources Equitably, Sustainably, and Transparently

Development Pillars / Economic Development / Managing Natural Resources Equitably, Sustainably, and Transparently

Pillar Objectives

Our challenge is to utilize Libya’s natural resource endowment for the common good while avoiding the mistakes of the past which promoted the inequitable distribution of key natural resources to political elites. In cases where the economic benefits of natural resources are shared with private investors, we must ensure that private gains are offset by national benefits such as technological acquisition, economic and social infrastructure development, and transfer of knowledge and skills to Libyans. We must increasingly involve our communities in the use and preservation of environmental assets so that our non-renewable resources are used in a manner that balances the needs of the present with the needs of future generations.

Transformation Projects for Managing Natural Resources Equitably, Sustainably, and Transparently

Transformation Project Profile

Transformation Project Profile

Natural resource extraction is a vital component of fiscal revenues and can contribute to employment generation and enterprise creation revenues are effectively and equitably distributed. Adopting transparency standards as well as strengthening civil society organizations to monitor production sharing agreements can bring more transparency to how Libya’s natural resources are governed and how government revenues are used.

Transformation Project Objective

  • Strengthen the accountability and governance of institutions involved in the oil and gas sector by increasing the amount of information available in the public domain
  • Provide a clear signal to investors that the government is committed to greater transparency
  • Promote greater economic and political stability by lowering instances of corruption and preventing conflicts that involve the oil and gas sectors

Transformation Project Profile

Government subsidies on oil and oil products create economic incentives for cross border smuggling. In addition to eliminating illegal smuggling of subsidized oil and oil products, subsidy reforms will reduce the burden on the national budget and increase resources for investment in infrastructure and improving public services.

Transformation Project Objective

  • Support commitments to phase out subsidies over the next three years
  • Support efforts to implement a smart card system to track supply and consumption
  • Identify and remove certain segments of the population from receiving subsidies so that the welfare scheme can better target the most vulnerable segments of society
  • Establish targeted active labor market programs in border regions that provide economic opportunities and employment for youth

Transformation Project Profile

Libya currently lacks a framework of environmental laws sufficient to protect its natural environment. The accession and ratification of existing multilateral environmental treaties, conventions, and agreements as well as the development of bilateral memoranda of understanding will provide an overarching framework for the creation of legislation to protect the environment while embedding environmental stewardship as a national value.

Transformation Project Objective

  • Strengthen the legislative framework for environmental sustainability
  • Increase institutional ability to develop and enforce environmental regulations
  • Improve bilateral, regional, and international cooperation to mitigate the environmental effects of development

Transformation Project Profile

Transformation Project Profile

Libya has a high potential for solar power and wind power. A diversification strategy that encourages the harnessing of solar and wind power, coupled with improvements to the energy grid, is required to support increased demand and prevent power failures and brownouts currently experienced. Public policy measures, laws, and long term contracts that encourage localized public and private energy production through renewable sources must be introduced.

Transformation Project Objective

  • Improve energy efficiency and conservation
  • Accelerate investment in renewable energy technologies by the private sector
  • Reduce harmful emissions produced through the burning of fossil fuels

Transformation Project Profile

Environmental impact assessments ensure the protection and conservation of the environment and safeguard communities from uncontrolled development. Sufficient legislative and institutional frameworks for environmental impact assessments must be introduced to ensure infrastructure projects do not have adverse effects on the environment and the quality of life of communities.

Transformation Project Objective

  • Adequately understand the environmental and social impacts of proposed infrastructure projects
  • Mandate mitigation activities or compensation for negative impacts

Transformation Project Profile

Recent geological and mineral studies suggest that there are significant levels of undiscovered natural resources. Libya must establish well equipped labs and institutions to conduct more extensive geological reconnaissance studies. Such studies would allow the government to develop a comprehensive understanding of the country’s natural resource endowment and strengthen its position when negotiating licensing rights with extractive companies.

Transformation Project Objective

  • Develop a comprehensive understanding of natural resource reserves
  • Improve the exploration, development, production, and utilization of Libya’s natural resources