Factsheet #56

Natural resource use fees

Instrument Type


Governance Level


Governance Mode


Water management topics addressed

Drought & water scarcity

Implementation requirements

Financial capacity


Human capacity


Political buy-in


Timeframe for implementation


#56: Natural resource use fees


Fees associated with the use of natural resources are collected so that the overall population benefits from these operations and so as to compensate for resulting damages.  


The fees are based on the unit of resource used, e.g. mineral resources extracted. Parts of the fee are earmarked so as to ensure sufficient funding for e.g. the protection of the natural environment and the restoration of natural resources. The percentage and extent of fees paid for the use of the natural resource that is earmarked for environmental protection and restoration of natural resources need to be defined. 

Example: Fees for the use of natural resources in Mongolia

Fees related to the use of natural resources are applied in Mongolia and used so that those citizens benefit who are affected by resource-intensive operations carried out throughout the territory, in compensation for the resulting environmental degradation. Collected fees are the sources of budget funding for the protection of natural environment and the restoration of degraded natural resources.


STEER (2019). Assessment of variables in the five in-depth case studies of the STEER project. Internal Report. (p. 335)

Hogan Lovells (2012). Revision of environmental laws in Mongolia and its impact on the mining sector. https://www.lexology.com/library/detail.aspx?g=06cbf257-305d-49ff-98ef-4154c8d0530b Retrieved 24 September 2020.

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