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Energy Investment Risk Assessment (EIRA)

The Energy Investment Risk Assessment (EIRA) is a publication of the Energy Charter Secretariat that evaluates specific risks affecting energy investment that can be mitigated through adjustments to policy, legal and regulatory frameworks. It aims to identify policy gaps, provide learning opportunities, and stimulate reforms which make the investment climate of countries more robust and reduce the risk of investor-State disputes.

Results for countries in the report are presented in the form of individual country risk profiles. Apart from highlighting the key strengths and areas for improvement in each country, the profiles of the recurrent participants include a year-on-year comparison table. Other types of investment risk such as commercial, technical and geopolitical, are not within the scope of the publication. In 2017 the first non-public edition of EIRA was developed. In 2018 the first public edition of this report has been published. In 2019, the EIRA report already contains 34 profiles on countries from Africa, Asia, the Americas, and Europe.  As of October 2019 a website dedicated to EIRA is available.

View EIRA website and download the #EIRA2019 publication

What is the aim of EIRA?

EIRA assists governments to identify and eliminate specific risks in the regulatory and legal environment which impede the inflow of investments. It assesses risks to energy sector investment that countries can control and limit through their actions. This information is essential as it enables governments to undertake required steps to make their regulatory frameworks robust, which is beneficial to induce investments in the energy sector.

The secondary aim of EIRA is to provide a reliable source of useful information to energy companies, investors and the financial sector on different aspects of the regulatory and legal environment in countries considered for investment.

Which risk areas are covered by EIRA?

EIRA focuses on three risk areas: (1) unpredictable policy/regulatory change, (2) discrimination between domestic and foreign investors, and (3) breach of state obligations. 

To measure these risks, four indicators have been identified:

  1. The foresight of policy and regulatory change
  2. Management of decision-making processes
  3. Regulatory environment and investment conditions
  4. The rule of law (compliance with national and international obligations)

Which countries are already taking part in the EIRA Report?

In 2016, the first stage of a pilot project was undertaken, covering Belarus, Colombia and Mauritania. The objective of the second stage of the pilot project conducted in 2017, was to test and fine-tune the methodology and to produce a pre-public version of EIRA. The EIRA pilot report 2017 was presented at the 28th Meeting of the Energy Charter Conference on 28-29 November 2017 in Ashgabat, Turkmenistan. This report, which was not made publicly available assessed the regulatory environment for investing in the energy sector of 9 countries: Armenia, Belarus, Iran, Mauritania, Mongolia, Nigeria, Romania, Kazakhstan and Ukraine. 

Since its inception participation in EIRA has grown considerably. 30 countries participated in EIRA 2018. The number of participating countries has increased to 34 in the 2019 edition of the report.

Extended EIRA country profiles

By request, the Energy Charter Secretariat develops extended EIRA country profiles. These extended profiles contain more detail and in-depth recommendations. They can be tailored based upon specific needs. In 2017, under the EU4Energy Program extended profiles have been developed for Armenia and Belarus. In 2018, an extended EIRA profile was published for Nigeria, based on a voluntary contribution from the Nigerian Government.

View all participating countries in EIRA 2019

How to join the EIRA Report?

The Energy Charter Conference requested the Energy Charter Secretariat to develop the third edition of EIRA in 2020 and invited Members, Observers and outreach countries to take part in it. Preparations for EIRA 2020 are already underway.

All governments may and are welcome to express their interest in taking part in future editions of EIRA. To this end, governments are requested to communicate their expression of interest to the Secretary-General of the Energy Charter Secretariat. The ultimate goal is to develop a regular full-fledged report, with worldwide geographical coverage.

Countries may also request the Secretariat’s Investment Promotion Centre to develop an extended EIRA country profile. For such profiles a voluntary contribution or external funding is required.