In partnership with the University of Pennsylvania, the AER undertook an international study, resulting in the development of the three pillars Regulatory Excellence, all of which can benefit from collective input and discussion. ICORE was born from this effort, with our belief that a broad collaboration between regulators globally could offer great benefits.
Regulatory Excellence, Defined
Regulators are tasked with a critical responsibility. Their mandates may vary slightly, but at its core that responsibility is to ensure that business activity is done for the benefit of an economy and by extension the people who make up that economy. The trust placed in regulators has eroded recently; society, however, needs to be able to have trust in regulators. They need to trust that everyone is playing by the same rules, that those rules are fair, and that those rules aren’t so burdensome that they curtail progress and innovation. A regulator’s credibility comes from their integrity, and that integrity is dependent on how well the regulator carries out their mandate. They must deliver on their mandates in a way that considers the broader public interest and preserves the character of public institutions.
A critical aspect of a regulator’s work is to understand the impact the regulations and decisions they make will have on wide and diverse populations. To uphold the public trust, regulators must be willing to properly engage with stakeholders, being both empathic and empathetic. Consideration must be given to every point of view and must be addressed respectfully. Of particular concern can be the relationship regulators must build with the world’s indigenous communities and ensure their rights and traditions are considered and respected through consultation processes. Not to be understated, however, is the relationship the regulator must have with the businesses, industries and sectors it oversees. Thoughtful consideration must be given to their viewpoints as well, and a regulator must weigh the value of investment with the concerns of all stakeholders.
Regulators are an essential and valuable part of the public sector. Regulatory Excellence depends on regulators consistently delivering on their mandates and ensuring investment proceeds safely and responsibly. The regulatory organization as a whole must uphold their mandates, and the same holds for individual regulators. They must be seen as knowledgeable and well-versed in their area of regulation. The strive for credibility and trust must be ongoing and front-of-mind at all times.
"A guiding method of conduct – built on the principles of trust, continuous improvement, and knowledge sharing – that facilitates cooperative and collaborative relationships between a regulatory agency and various stakeholders to produce positive outcomes. This is essential to the journey of achieving regulatory excellence."
“The Paris Agreement is changing the energy landscape drastically, with greater focus towards building a low carbon, resilient and sustainable future. To guide this process, joint efforts of upstream regulators will be required. I warmly welcome the ICORE initiative, which will be instrumental in spreading best practices, collaboration and innovation around the globe. Driving international regulatory excellence – by enabling nations, industry leaders, and global citizens – will contribute to responsible resource development.”Dr. Fatih Birol, Executive Director, International Energy Agency