Welcome to ECA Watch

Export credit agences provide government-backed loans, guarantees and insurance to corporations working internationally in some of the most volatile, controversial and damaging industries on the planet.

Shrouded in mystery, ECAs provide financial backing for risky projects that might never otherwise get off the ground. They are a major source of national debt in developing countries.

ECA Watch is a network of NGOs from around the world. We come together to campaign for ECA reform - better transparency, accountability, and respect for environmental standards and human rights.

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What's New for May 2023

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • CSOs condemn G7 leaders for dangerous backsliding on gas, breaching commitments to end fossil fuel finance
  • Ahead of OECD negotiations, report shows OECD export finance props up fossil fuels, blocking energy transition
  • OECD ECAs urged to scale up climate ambitions
  • 200 and counting – Global financial institutions committed to coal divestment has doubled in 3 years
  • 103 Canadian CSOs call for elimination of fossil fuel subsidies through a robust assessment framework
  • IFC announces it will stop clients funding new coal projects
  • China trails global financial firms in committing to end investments in coal projects
  • Export credit market shows strong growth: Berne Union
  • Heads of G7 Export Credit Agencies - Meeting Statement
  • Quad summit discusses ECA cooperation In Indo Pacific
  • Australian roundtable notes ECA support crucial to transition
  • EU greenlights Denmark’s export and investment fund
  • Tiwi Islanders protest Santos' Barossa gas project in Australia
  • EDC and Alstom support sustainable transport projects
  • UKEF and BAE reach deal over historic Iran weapons sales
  • Swedwatch:  The EU must urgently review its outdated policy on export credits

CSOs condemn G7 leaders for dangerous backsliding on gas, breaching commitments to end fossil fuel finance

(Oil Change International, Washington, 20 May 2923) G7 Leaders in Hiroshima concluded that there is “an important role” for “increased deliveries of LNG” and that “publicly supported gas investments can be appropriate” [i.e. by ECAs], jeopardizing the 1.5ºC warming limit and directly contradicting last year’s G7 commitment to end international public finance for fossil fuels by the end of 2022. The G7 endorsement of increased gas finance comes despite strong opposition. Leading up to the Summit, activists organized over 50 actions in 22 countries to urge Japan and fellow G7 countries to end their support for fossil fuels and to stop driving the expansion of gas and other fossil-based technologies, A majority of international public finance for fossil fuels is provided by OECD governed Export Credit Agencies – more than even Multilateral Development Banks – with 71% of export financing for energy going to oil and gas. OECD ECAs invested in 56% of new hazardous liquified gas (LNG) export terminal capacity built in the last decade (providing at least $81 billion total), helping drive the global fossil gas boom.  Overall, about 42% of all fossil fuel finance [comes] from ECAs under the OECD supported midstream infrastructure activities, such as pipelines, LNG ports, and shipping. At COP26, the 2021 global climate conference in Glasgow, 34 countries and 5 institutions pledged to end direct international public finance for unabated fossil fuels by the end of 2022 and prioritize their public finance fully for the clean energy transition. A regularly updated OIC briefing tracks implementation efforts and assesses whether countries are on track to keep their stop funding fossils promise.

https://priceofoil.org/2023/05/20/csos-condemn-g7-leaders-for-dangerous-backslid...


Ahead of OECD negotiations, report shows OECD export finance props up fossil fuels, blocking energy transition

(Price of Oil, Hiroshima, 20 May 2023) G7 Leaders in Hiroshima concluded that there is “an important role” for “increased deliveries of LNG” and that “publicly supported gas investments can be appropriate”, jeopardizing the 1.5ºC warming limit and directly contradicting last year’s G7 commitment to end international public finance for fossil fuels by the end of 2022. The G7 endorsement of increased gas finance comes despite strong opposition. Leading up to the Summit, activists organized over 50 actions in 22 countries to urge Japan and fellow G7 countries to end their support for fossil fuels and to stop driving the expansion of gas and other fossil-based technologies such as ammonia co-firing in coal-fired power plants. In their Leaders’ Communique, the G7 claim that “they are steadfast in their commitment to … keeping a limit of 1.5ºC global temperature rise within reach”. A true commitment to 1.5°C, however, requires the G7 to explicitly exclude continued investments in new upstream gas projects and Liquefied Natural Gas (LNG) infrastructure. Today’s G7 endorsement of increased gas investments came after a push from Japan and Germany, with Japan using its G7 Presidency to also promote other fossil fuel-based technologies such as hydrogen, ammonia and CCS. The G7 play a central role in enabling the global buildout of LNG infrastructure.

https://priceofoil.org/2023/05/20/csos-condemn-g7-leaders-for-dangerous-backslid...


OECD ECAs urged to scale up climate ambitions

(Global Trade Review, London, 24 May 2023) The export credit agencies (ECAs) of OECD countries should take more ambitious action to protect the climate after pouring 77% of their spending into fossil fuel projects between 2018 and 2020, a campaign group has argued. OECD members pumped an annual average of US$41bn into fossil fuel exports during the three-year period, totalling almost five times the amount of financing provided for clean energy, according to NGO Oil Change International. The report uses energy finance data for OECD members with ECAs which held assets above US$1bn between 2018 and 2020. “This directly contradicts internationally agreed climate goals, including the Paris Agreement objective to align financial flows with the low-carbon energy transition,” says the organisation, which campaigns for an end to public financing for polluting energy sources. ECAs have come under increased scrutiny for their role in fossil fuel finance in recent months, and campaign groups called for strict curbs on such financing as part of the  modernisation of the OECD framework on export credits, announced earlier this year. OECD Arrangement participants are meeting in Paris this week to begin drafting the text of the updated framework. It will likely result in an expansion of the types of projects classed as climate-friendly to include clean hydrogen and ammonia, low emissions manufacturing, zero and low emissions transport, and clean energy minerals and ores. The OECD Arrangement’s announcement of the modernisation package did not include any measures on limiting oil and gas support.

https://www.gtreview.com/news/sustainability/oecd-ecas-urged-to-scale-up-climate...


200 and counting – Global financial institutions committed to coal divestment has doubled in 3 years

(IEEFA, Lakewood OH, 4 May 2023) In its latest report, the Institute for Energy Economics and Financial Analysis (IEEFA) has found that globally significant financial institutions (FIs) are committing to divesting away from coal at a quicker rate as climate change becomes a priority globally. It took almost six years for the first 100 institutions to adopt coal exclusion policies, but since then the number has doubled in just over three years. “Interestingly, it’s not the largest asset managers who are leading the way. It’s more the medium- sized ones who recognise their duty to clients. This is a reflection that the market is learning and learning fast amid regulators getting tough on greenwashing. Collectively, the whole finance ecosystem is working together to find where the issues are,” said IEEFA’s debt markets leader for Asia Pacific Christina Ng. While several large global asset managers have established formal coal exit policies, the three largest asset managers managing assets worth US$20 trillion have either formulated weak coal exit policies or have no policy at all. Overall, there are 114 FIs in Europe, 53 in Asia-Pacific, 27 in North America, 6 in Africa, and 2 in South America. European financial institutions are leading the way in coal divestment with stricter policies than those in other regions. A total of 22 FIs in the emerging economies have also established coal divestment policies, including South Africa, Malaysia, China, Turkey, India, and the Philippines. Interestingly these countries are largely reliant on coal for electricity.

https://ieefa.org/articles/200-and-counting-global-financial-institutions-commit...


103 Canadian CSOs call for elimination of fossil fuel subsidies through a robust assessment framework

(Environmental Defence, Ottawa, 15 April 2023) In a letter to Prime Minister Trudeau, a broad range of Canadian organizations note that it has been over a decade since Canada first committed to ending inefficient fossil fuel  subsidies. Instead of fulfilling this promise, the Government of Canada has continued to  provide billions of dollars to oil and gas companies year after year. Now, the federal government has a critical opportunity to correct its track record and become a global leader in its efforts to eliminate fossil fuel subsidies. Noting the much-anticipated Assessment Framework for Fossil Fuel Subsidies has the potential to set an example for the rest of the world – if the framework delivers the highest possible ambition. Conversely, a weak framework could damage Canada’s credibility in international fora and set a dangerous precedent for other countries. Canada should use the World Trade Organization Agreement on Subsidies and Countervailing Measures Article 1.1 definition of subsidies to ensure all relevant measures are captured in the review. The definition of subsidy used must ensure that all tax and non-tax measures that benefit fossil fuel producers are captured in the review. Canada spent $18B on financial supports for the fossil fuel industry last year.

https://docs.google.com/document/d/1vbu2Ge6gtljKwjiTPqMnVjBXO8ySsBazmoRjxh2bv60


IFC announces it will stop clients funding new coal projects

(IFC, Washington, no date 2023) One of the key goals of the Paris Agreement is to ensure that financial flows are consistent with a pathway toward low emissions and climate resilient development. In 2020, The International Finance Corporation (IFC) the World Bank’s private sector arm launched the Green Equity Approach (GEA) to help our financial institution (FI) clients continue to do business in a changing world. This year (2023) IFC, is taking the next step toward alignment with Paris Agreement ambitions by introducing an update to the GEA under which IFC will start requiring a commitment from FI clients to not originate and finance any new coal projects. Previous policy allowed the IFC’s financial clients to support new coal projects as long as they exited coal by 2030, but new update explicitly rules out new coal. However Re-Course notes that the IFC still has a fossil fuel addiction. In the year when the Multilateral Development Banks (MDBs) are finally aligning their portfolios with the Paris Agreement, over seven years after the Agreement itself was made, it is time for change. [ECA Watch can only hope the OECD and all ECAs could move quickly in this direction for all fossil fuel project credits and insurance.]

https://www.ifc.org/wps/wcm/connect/industry_ext_content/ifc_external_corporate_...


China trails global financial firms in committing to end investments in coal projects

(South China Morning Post, Hong Kong, 4 May 2023) The number of financial institutions globally that have committed to coal divestments has doubled in the past three years, but it remains negligible in China, according to a new IEEFA study. While more than 200 “globally significant” companies now have formal policies restricting investment in coal mining or coal-fired power projects, just three financial institutions from China have established a formal coal policy,

https://www.scmp.com/business/banking-finance/article/3219254/climate-change-chi...


Export credit market shows strong growth: Berne Union

(Reinsurance News, Brighton, 15 May 2023) Berne Union, the global association for the export credit and investment insurance industry, has reported that its market showed “strong growth” across business lines in 2022 and a fall in claims paid overall. Highlights from the year’s data show that the export credit industry supported $2.83 trillion of cross-border trade and investment with an additional $68.6bn in non-cross-border support for exporters. Berne Union notes that growth has been supported by the return of significant transactions in the transportation sector as well as a large expansion of manufacturing sector project. The report notes that renewable energy transactions also continue to increase and are close to doubling 2019 levels, while commitments for natural resources continue to decline now at just 33% of their 2019 levels. Total claims paid fell from $9 billion to $7.6 billion over 2022, following a notable drop in MLT transportation claims which had spiked in the first stages of the pandemic. [However as noted in other articles of this issue of What's New, ECAs poured 77% of their spending into fossil fuel projects between 2018 and 2020, making claims for increased renewable energy transactions almost irrelevant! ]

https://www.reinsurancene.ws/export-credit-market-shows-strong-growth-berne-unio...


Heads of G7 Export Credit Agencies - Meeting Statement

(UK Government, Rome, 19 May 2023) The leaders of official Export Credit Agencies (ECAs) of G7 Countries - Canada, France, Germany, Italy, Japan, United Kingdom and the United States of America – met on May 16th in Rome, hosted by SACE, the Italian ECA. The meeting provided a framework for an open and constructive exchange around topics of relevance for the financing of global trade, from a practical and policy perspective. Discussions centred on recent business trends in the ECA industry, new instruments implemented to address the challenges currently faced by national exporters, policies and initiatives related to climate, as well as on joint support for the reconstruction process in Ukraine:

https://www.gov.uk/government/news/heads-of-g7-export-credit-agencies-meeting-st...


Quad summit discusses ECA cooperation In Indo Pacific

(Deccan Herald, Bangalore, 21 May 2023) The leaders of the US, Japan, Australia and India met for the Quad Summit on the sideline of the G7 conclave in Hiroshima and agreed to work on a Memorandum of Cooperation (MOC) between the export credit agencies of the governments to strengthen collaboration for the promotion of trade, financing of trade-enabling projects, economic development, and knowledge-sharing with respect to the export of goods and services. The MOC underscores the importance of economic development of the Indo-Pacific region and of increasing business opportunities, they said. "We emphasise the importance of adherence to international law, particularly as reflected in the UN Convention on the Law of the Sea, and the maintenance of freedom of navigation... including those in the East and South China Seas,” the leaders stated in a joint statement, tacitly hitting out at China. India on Saturday joined Japan, Australia and the US to denounce China’s “destabilising and unilateral actions” to change the status quo in the Indo-Pacific region and its move to militarise the disputed features in the East and the South China sea.

https://www.deccanherald.com/national/quad-denounces-china-s-destabilising-actio...


Australian roundtable notes ECA support crucial to transition

(Infrastructue Investor, Sydney, 19 May 2023) Australia’s infrastructure sector has centred on privatisations for decades. But a rapidly changing world calls for more greenfield development. Australia’s transition prospects have recently been boosted by the country’s most significant emissions reduction legislation in more than a decade. Total emissions from major industrial facilities must now be cut and not just offset. This is deemed critical to meeting Australia’s net-zero pledge, which will require a 45% reduction in emissions by 2030. Danny Latham, head of Australia and New Zealand at Igneo Infrastructure Partners notes: “We need something like $400 billion of investment in renewable generation and associated transmission links to get anywhere near 2050 net-zero targets". Aaron Ross of rhw ANZ Banking Group notes that one way the Australian government could better support technologies associated with the transition is through export credit. “The Danish and Korean export credit agencies EKF, KEXIM and K-Sure have been providing significant support to help develop wind and battery manufacturing projects, for example,” he says. “We have seen similar things in Taiwan, Southeast Asia and Europe generally. There are opportunities for Australia too, in terms of accessing the Export Credit Agency market as an additional source of capital to fund the transition.”

https://www.infrastructureinvestor.com/australia-roundtable-fit-for-the-future/


EU greenlights Denmark’s export and investment fund

(ScandAsia, Bangkok, 18 May 2023) The European Commission has approved Danish measures to set up Denmark’s Export and Investment Fund. The fund has a total estimated value of over €4 billion. It aims at supporting economic development, competitiveness, innovation, and growth for Danish companies. Denmark notified the commission its plans to set up the fund, with an initial capital of up to €807 million. The fund will be established as a new, fully state-owned entity gathering three existing state-owned entities: the Danish Growth Fund, the EKF Denmark’s Export Credit Agency and the Danish Green Investment Fund.

https://scandasia.com/eu-greenlights-denmarks-export-and-investment-fund/


Tiwi Islanders protest Santos' Barossa gas project in Australia

(Upstream, Perth, 29 May 2023) Australian oil giant Santos denied claims of human rights abuses against Indigenous Australians relating to domestic gas and LNG projects planned or under development that have been alleged to some of the company’s investors and financiers. Equity Generation Lawyers, which bills itself as specialists in Australian climate change law, early last month filed human rights grievances against financial institutions supporting the Barossa gas project located in waters off northern Australia. Those financial institutions included Australia’s ANZ and Westpac, DNB Bank of Norway, Singapore’s DBS Bank and three Japanese banks. In tandem, export credit agencies in Japan and South Korea that are set to provide financial support to Santos’ project partners from those nations also received letters of complaint. The company has more than 90 agreements in place across Australia that relate to native title, Aboriginal land rights and cultural heritage management, involving six Aboriginal Land Councils and 23 Traditional Owner groups.

https://www.upstreamonline.com/people/santos-rejects-human-rights-abuses-relatin...


EDC and Alstom support sustainable transport projects

(Railway Gazette, Suttton UK, 24 May 2023)  Alstom and Export Development Canada have signed a C$3·5bn three-year sustainable global corporate partnership covering export financing support and insurance in the transport sector. The export credit agency will focus its support on digital systems, services and projects based on low-emission freight and passenger transport technologies. These could include electrified, hybrid, battery or hydrogen propulsion. Alstom will report on sustainability using indicators such as CO2 emissions, renewable energy and gender balance.

https://www.railwaygazette.com/export-credit-agency-to-support-sustainable-trans...


UKEF and BAE reach deal over historic Iran weapons sales

Global Trade Review, London, 15 May 2023) UK Export Finance (UKEF) and defence giant BAE Systems have struck a last-minute out of court deal to settle a £13.9mn claim by the government agency over guarantees for missile systems sold to Iran in the 1970s. In around 1980, export credit agency UKEF paid a claim under a policy covering contracts for the supply and maintenance of the Rapier surface-to-air missile system, a deal which fell apart in the wake of the Islamic Revolution of 1979. A UKEF spokesperson later confirmed to GTR that a deal was struck and the trial averted, but did not provide details of the settlement. Court documents show that UKEF paid BAE (then BAC) £27.3mn under guarantees issued between 1973 and 1977, when Iran was ruled by Western-backed autocrat Shah Mohammed Reza Pahlavi. But in 1991, Iran’s defence ministry launched arbitration proceedings in The Hague against BAE for alleged non-performance of defence contracts, which triggered a counterclaim by the UK firm. Almost two decades later the arbitration panel awarded BAE £28.8mn from the Iranian defence ministry, while Iran was awarded an undisclosed “greater amount” from BAE in relation to other contracts not covered by the UK government guarantees. BAE has historically been a major purchaser of UKEF’s export credit products. Between 2018 and 2022 alone, UKEF extended £3.5bn in support to BAE through direct lending and buyer’s credit, according to the agency’s data.

https://www.gtreview.com/news/europe/ukef-and-bae-reach-deal-over-historic-iran-...


SWEDWATCH: The EU must urgently review its outdated policy on export credits

(Swedwatch, Stockholm, 27 April 2023) Despite promises to make financial flows consistent with a low-carbon economy, EU member states continue to provide financial support to the fossil fuel industry through export credits. It is time that the EU Commission replaces its outdated policy with new and ambitious regulation, prohibiting export support to oil and gas, Swedwatch argues in a new policy paper. “Export credit agencies are the world’s largest international public financiers of fossil fuels. In the EU, the lack of an ambitious regulatory framework allows for oil and gas projects to continue to be supported through state-backed export finance, undermining EU contributions to climate goals. This gap needs to be urgently addressed“, says Davide Maneschi, climate change program officer at Swedwatch. Export credit agencies (ECAs) have a critical role in the energy transition, as they de-risk large scale infrastructure and energy projects. However, in the period 2019-2021, some six years after the Paris Agreement was signed, G20 export credit agencies provided seven times more support for exports of fossil fuel projects than for clean energy. In an April 27 policy paper Swedwatch calls on the European Commission to promptly initiate a reform of  the regulatory framework on the activities of ECAs, ensuring that they are aligned with the Paris Agreement 1.5°C climate change mitigation goals and EU climate objectives.

https://swedwatch.org/themes/eu-must-urgently-review-its-outdated-policy-on-expo...


What's New for April 2023

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • OECD countries reach agreement to modernize export credit support
  • ECAs of a wide range of OECD countries still finance oil and gas
  • DeSmog: "UKEF locks us all into more carbon emissions for decades"
  • FOE investigates EXIM fossil fuel influence peddling in Alaska carbon bomb
  • Export Finance Australia (EFA) can no longer justify fossil fuel funding
  • ECAs to play significant role in securing Europe’s critical materials
  • UK export credit agency gains £10bn in additional financing
  • Russians urging greater EXIAR engagement with Africa
  • Italian credit agency SACE to allocate additional USD 1.1bn for Ukraine
  • SINOSURE pulls out of Nigerian AKK pipeline funding
  • COPE to investigate corruption charges against Sri Lanka ECA General Manager
  • Five decades later, UKEF-backed Iran missiles deal lands in court
  • Export Credit Norway (ECN) covers 85% of Hungarian missile system purchase
  • Angolan food production plant supported by Deutsche Bank and SACE
  • Chinese & foreign banks & ECAs bolster Belt & Road Initiative

OECD countries reach historic agreement to modernize export credit support

(Trade Finance Global, London, 7 April 2023) A modernisation package agreed in principle by participants will specifically allow countries to offer greater support for green projects while also expanding the use of export credits in the context of an evolving world economy and an increasingly competitive landscape. Within the package of reforms, the Participants agreed to expand the scope of green or climate-friendly projects eligible for longer repayment terms, as permitted under the Climate Change Sector Understanding (CCSU). “The modernisation package agreed by Participants to the Arrangement on Officially Supported Export Credits is a great milestone to help increase the impact of trade and finance flows on securing our climate objectives,” OECD Secretary-General Mathias Cormann said. “It will allow the scaling up and a better targeting of public and private finance to support climate-friendly investments and help us meet our global net zero emissions objective.” This reform is expected to come into effect later this year, once Participants complete their formal internal decision-making processes and agree to the new Arrangement text. [As noted in the next What's New article, OECD ECAs have a long way to go to brag about reducing the current $1 to $7 ratio of renewable to fossil fuel project support!]

https://www.tradefinanceglobal.com/wire/oecd-countries-reach-historic-agreement-...


ECAs of a wide range of OECD countries still finance oil and gas

(Energy Monitor, London, 17 April 2023) All 38 members of the OECD have pledged to reach net zero, with the US and EU in the middle of hugely significant domestic decarbonisation programmes. Yet export finance remains misaligned with the requirements of net zero, directing seven times more support to fossil fuels ($33.5bn per year) than renewables (just $4.7bn per year) on average from 2019 to 2021, according to the OCI. Between 2019 and 2021, OECD ECAs were the world’s largest public international financiers of energy projects. Although China is not subject to the OECD Arrangement guidelines, “a general trend has seen Chinese international public finance eventually follow the OECD guidelines, which also help shape G7 and G20 commitments”, says Nina Pušić, from the NGO Oil Change International (OCI). China’s international coal financing ban, for example, came into effect the same year that the OECD ECAs introduced a similar ban. OECD ECAs (most notably Japan, South Korea and Canada) were the world’s largest public international financiers of oil and gas between 2019 and 2021. Canada has since implemented a pledge made at COP26 to end export finance for oil and gas, but others, including Japan, the US and South Korea, have yet to either make such a pledge or fully follow on through on it. There is a campaign under way from 175 civil society groups from more than 45 countries – including the OCI, the Club of Rome and Friends of the Earth – for the OECD to phase out international public financing of fossil fuels.

https://www.energymonitor.ai/finance/why-decisive-oecd-action-could-be-the-death...


DeSmog: "UKEF locks us all into more carbon emissions for decades"

(DeSmog, London, 6 April 2023) UKEF has been accused of “locking us all into more carbon emissions for decades to come” by giving so much assistance to the sector. UKEF, a UK government agency, has provided billions of pounds worth of financial support to the high-carbon aviation sector since the Paris climate agreement was adopted in 2015, DeSmog analysis shows. UK Export Finance (UKEF) has effectively subsidised new airports, aircraft, and maintenance, despite stating that the oil-dependent industry is unlikely to begin cutting emissions “materially” until the 2030s. A spokesperson for UKEF, who did not dispute DeSmog’s findings, said: “UK Export Finance supports British businesses, such as the aerospace sector, to export and grow the economy. During the pandemic, UKEF supported the aviation industry with £7.4 billion to safeguard the industry and jobs. “UKEF is working with aerospace customers to help decarbonise the sector. This year we are setting a decarbonisation target for our aviation exposures to help deliver our pledge to net zero transition by 2050. Over half the financial support provided by UKEF since the landmark climate accord has gone to aviation, with Rolls Royce, Airbus, Boeing, and British Airways taking the lion’s share. UKEF offers a range of loans, insurance and guarantees to help British companies secure business abroad. Just one of the 62 deals supported, listed in the agency’s annual reports, came with any climate-related conditions attached. Aviation accounts for the majority of the greenhouse gas emissions currently generated by UKEF’s finance, according to its latest estimate: 8.2 million tons, equivalent to putting 1.8 million petrol-powered cars on the road. DeSmog has previously reported on the significant donations made by aviation-linked individuals and companies to political parties, particularly the Conservatives. Airbus gave a total of £35,000 to the Tories between 2015 and 2018, according to official records, though there is no suggestion that the UKEF financing was influenced by any of the donations.


     
          https://www.desmog.com/2023/04/06/aviation-industry-awarded-18-billion-of-public...    
          


FOE investigates EXIM fossil fuel influence peddling in Alaska carbon bomb

(Friends of the Earth, Washington, 13 April 2023) Friends of the Earth has filed an open records request of the Alaska Gasline Development Corporation (AGDC), the state entity developing the Alaska LNG Project–a proposed $38.7 billion LNG project with a potential carbon footprint of 2.7 billion metric tons of CO2, ten times the climate pollution of the recently approved Willow Project. The Alaska LNG Project is already angling for significant federal subsidies. A provision snuck into the Infrastructure Investment and Jobs Act (IIJA) makes the project potentially eligible for a $25.6 billion loan guarantee. The project was also “provided official correspondence” that it will receive a Letter of Interest from the U.S. Export-Import Bank (EXIM), the export credit agency of the US. Thanks to its new Make More in America Initiative, passed in 2022 and widely seen as benefiting LNG developers, EXIM can now finance domestic projects like Alaska LNG as well as international ones. Hopefully the Biden Administration isn’t about to greenlight another carbon bomb,” said Lukas Ross, Program Manager at Friends of the Earth. A story about two former fossil fuel executives shaping climate policy seems like something out of the Trump Administration.”

https://foe.org/news/alaska-lng-boondoggle/


Export Finance Australia (EFA) can no longer justify fossil fuel funding

(Lowy Institute, Sydney, 6 April 2023) Since 2009 EFA has helped to underwrite global heating by providing roughly AU$1.69 billion to fossil fuel firms, while offering a relatively paltry AU$20 million for renewable energy projects. Last year, many of Australia’s key allies signed the so-called Glasgow Statement, which commits signatories to ending public support for international fossil fuel projects. The reasoning was clear: continuing to use taxpayer dollars to underwrite new oil, gas and coal projects, such as coal-fired power plants, is inconsistent with the 1.5°C warming limit and goals of the Paris Agreement. Our ECA research suggests this pattern of lending is likely a result of interrelated pressures from large, politically influential exporting firms that argue EFA’s support is critical for the Australian economy, and national security concerns about the future of Australia’s energy security. However, these arguments no longer stack up. First, fossil fuel firms that benefit from billions in EFA support are among Australia’s largest and most profitable corporations; second, ending public financial support for the export of coal and gas will not prevent the sector from maintaining energy security necessary to power the country’s economy and third, and related, if Australia is to be a renewable energy superpower as the PM has declared, Canberra can ill afford to delay supporting renewables industries.

https://www.lowyinstitute.org/the-interpreter/australia-can-no-longer-justify-fo...


ECAs to play significant role in securing Europe’s critical materials

(Global Trade Review, London, 23 April 2023) Export credit agencies (ECAs) are set to play a vital part in the EU’s Critical Raw Materials Act (CRMA), introduced to help secure supplies of metals and minerals needed for the transition from fossil fuels to sustainable energy.The act is part of the EU’s bid to minimise the effect of rocketing prices and supply chain disruptions in the wake of Russia’s war with Ukraine and the pandemic, as well as to mitigate its reliance on a small number of countries, including China, for access to minerals and metals essential to the production of more environmentally friendly energies.It also intends to set up an EU export credit facility and a critical raw materials “club” aimed at all countries interested in strengthening global supply chains. The EU’s list of critical raw materials includes nickel, lithium, aluminium, cobalt and graphite, which are crucial for technologies such as solar photovoltaic panels and electric vehicles. Major investment is required to set up upstream, midstream and downstream operations in Europe.

https://www.gtreview.com/news/europe/ecas-to-play-significant-role-in-securing-e...


UK export credit agency gains £10bn in additional financing

(Institute of Export & International Trade, London, 4 April 2023) UK Export Finance (UKEF) has been granted an extra £10bn of capacity to support UK businesses selling overseas. According to a press statement, this brings the total cap on its financial exposure to £60bn and adds extra capacity to the agency’s work supporting UK exporters. UKEF says it provided £7.4bn in financing in the 2021-22 financial year, which supported 72,000 jobs in the UK. The government credit agency also states that, as part of its renewed focus on combatting climate change, the additional capability will help it focus on building long-term, sustainable growth.

https://www.export.org.uk/news/636518/UK-export-credit-agency-gains-10bn-in-addi...


Russians urging greater EXIAR engagement with Africa

(Weekly Blitz, Dhaka, 29 April 2023) Russia’s weak economic presence in Africa has become a significant question of concern for some experts as they wonder why the nation is not aggressive with this like its ally, China. Smaller countries, such as Turkey, are visibly broadening their economic influence, strengthening business investments and so are a number of Gulf States. “It is important for us to expand and improve competitive government support instruments for business. Senator Igor Morozov, a member of the Federation Council Committee on Economic Policy and Chairman of the Coordinating Committee on Economic Cooperation with Africa stressed: "It is obvious that over the thirty years when Russia left Africa, a number of countries such as China, India, the United States and the European Union have significantly increased their investment opportunities there in the region”. The meeting collectively acknowledged Africa as a huge continent that still requires economic development. Its active demographic growth and abundance of natural resources offer conditions to become the world’s biggest market in the next few decades. Nikita Gusakov, Head of the Russian Export Credit and Investment Insurance Agency (EXIAR), reiterated that Africa was a priority for the agency, outlining a number of deals that EXIAR has been involved in on the continent. He reiterated at the meeting, one of the roadblocks is the lack of adequate knowledge among Russian companies about the opportunities available in Africa. It is partly due to limited interaction with the private sector actors and civil society. During the Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC), Chinese President Xi Jinping said: “China will expand cooperation in investment and financing to support sustainable development in Africa. China provided $60 billion of credit line to African countries to assist them in developing infrastructure, agriculture, manufacturing and small and medium-sized enterprises.” Russia could consider the Chinese model of financing various infrastructure and construction projects in Africa. Secretariat of the Russia-Africa Partnership Forum (RAPF) agreed during a recent meeting that lack of financial support was the major reason for Russia’s weak economic footprints across Africa. The representatives leading Russian companies and banks, in attendance, discussed an effective system of financing projects and supporting investment in Africa.

https://www.weeklyblitz.net/international/russians-complaining-how-to-engage-wit...


Italian credit agency SACE to allocate additional USD 1.1bn for Ukraine

(Euromaidan Press, Kiev, 26 April 2023) In addition to the previously announced €500 million ($522 million), the Italian Export Credit Agency SACE will allocate an additional €1 billion ($1.1 billion) to support trade and financial operations. This is a highly important signal for Italian business, as reported by Interfax-Ukraine, referencing the statement by Prime Minister of Ukraine Denys Shmyhal during the briefing in Rome.During his meeting with Prime Minister Shmyhal, Italian President Sergio Mattarella advocated for Ukraine’s swift EU accession.

https://euromaidanpress.com/2023/04/26/italian-credit-agency-sace-to-allocate-ad...


SINOSURE pulls out of Nigerian AKK pipeline funding

(Guardian.NG, Abuja, 19 April 2023) Financiers of the Abuja-Kaduna-Kano pipeline have pulled out of the project, citing an alleged 570% inflated contract sum, far above global threshold. Infrastructure and Commercial Bank of China (ICBC), Infrastructure Bank of China and China Export Credit Agency (SINOSURE) – were to provide 85% or $2.38 billion of the funding requirement. Their Nigerian counterparts, Oilserve and Oando, are to shoulder the balance 15% or $420 million. With this development, the project has been stalled, as there is no funding to cover cost of the second and third legs from Abuja to Kaduna and Kaduna to Kano. It was learnt that the Nigerian National Petroleum Corporation Limited (NNPCL), through the Nigeria Gas Transport Processing Company (NGTPC), had attempted to bridge the funding gap, but lacked the needed liquidity.  Globally, the cost of high-pressure transmission gas pipelines is built at $800,000 per kilometre. In Nigeria, the Final Investment Decision (FID) for EPC was scheduled at $4,560,260 million, which is a 570% inflation above global standards.These examples clearly show that Nigeria has the highest cost of contract in the world. These companies cannot afford to go into cahoots with Nigerians because they would be easily caught when they submit their financial reports to their countries of origin.”

https://guardian.ng/news/nigeria/akk-pipeline-abandoned-over-alleged-570-inflate...


COPE to investigate corruption charges against Sri Lanka ECA General Manager

(Island Online, Sri Lanka, 9 March 2023)The Committee on Public Enterprises (COPE) has proposed that a three-member committee be appointed by the Secretary to the Ministry of Finance to investigate corruption charges levelled against the General Manager of the Sri Lanka Export Credit Insurance Corporation (SLECIC). The recommendation came following a revelation made during a recent COPE meeting about several accusations of corruption being made against the SLECIC General Manager, Dilruk Ranasinghe.
Speaking in this regard, Sri Lanka Podujana Peramuna (SLPP) MP Attorney-at-Law Madhura Withanage stated that Ranasinghe should currently be ‘behind bars or in police custody’. He accused Ranasinghe of fraudulently obtaining funds from SLECIC for his personal vehicular expenses, amongst other accusations, adding that he has also received information that Ranasinghe had  defrauded the company by issuing fake bills. Accordingly, COPE recommended that a committee be appointed to investigate these accusations and that the relevant report be submitted within three weeks.

https://www.adaderana.lk/news/88957/committee-to-investigate-corruption-charges-...


Five decades later, UKEF-backed Iran missiles deal lands in court

Global Trade Review, London, 17 April 2023) UKEF is suing BAE Systems, one of its biggest clients, over contracts for the supply of missiles to Iran in the 1970s. The UK’s export credit agency is trying to recover £13.9mn it paid to the defence and aerospace giant in the 1980s, under three export credit insurance policies issued between 1973 and 1977. A trial is set for London’s High Court on May 8. The government guaranteed contracts for the supply of weapons, spares and maintenance for BAC’s Rapier surface-to-air missile systems to Iran, then led by the Western-backed autocrat Shah Mohammed Reza Pahlavi. In around 1980, BAC called on the guarantees due to “their Iranian counterparty’s non-performance” under the contracts, according to UKEF’s statement of claim in the case. The document does not describe the reason the contracts fell apart but in 1979 the Shah was overthrown by a popular uprising that became the Islamic Revolution, and was replaced by a clerical regime hostile to the UK.

https://www.gtreview.com/news/europe/five-decades-later-ukef-backed-iran-missile...


Export Credit Norway (ECN) covers 85% of Hungarian missile system purchase

(Daily News, Budapest, 22 April 2023) Hungary buys high-tech Norwegian missile system A 21st-century high-tech Norwegian missile system, NASAMS, Hungary is getting from Kongsberg, Norway’s premier supplier of defence and aerospace-related systems, will reinforce the country’s air defence from this year, Defence Minister Kristóf Szalay-Bobrovniczky said in Kongsberg. The NASAMS system is expected to be inaugurated in Hungary in August, the ministry said. Hungary signed the contract on the NASAMS system in November 2020. In March 2021, the country signed a financing agreement with Export Credit Norway (ECN) and the Norwegian Export Credit Guarantee Agency (GIEK) that will cover 85 percent of the 410 million euros cost of the NASAMS. The NASAMS, used widely among NATO members, will replace Hungary’s more than 40-year-old Soviet missile system, MTI wrote.

https://dailynewshungary.com/hungary-buys-high-tech-norwegian-missile-system/


Angolan food production plant supported by Deutsche Bank and SACE

(Trade Finance Global, London, 17 April 2023) Today, Deutsche Bank and SACE announced the close of a €57 million, 10-year lending facility in support of local food production in the Republic of Angola. This facility was guaranteed by SACE, the Italian Export Credit Agency (ECA), and Desenvolvimento de Angola (BDA). The facility will be used to fund an export contract with the Italian company, Andreotti Impianti Spa, and Carrinho Empreendimentos SA, a local Angolan company for the supply of a fully automated soybean and sunflower crushing plant. Located in Lobito, the plant will be the largest of its kind in Africa, with a throughput capacity of up to 4,000 tonnes of soybeans or 2,400 tonnes of sunflower seeds per day. Construction of the soybean and sunflower crushing plant will take approximately two years and is expected to create around 300 direct jobs and thousands of indirect jobs related to soybean and sunflower planting.

https://www.tradefinanceglobal.com/wire/angolan-food-production-plant-supported-...


Chinese & foreign banks & ECAs bolster Belt & Road Initiative

(China Daily, Beijing, 11 April 2023) Some of China's large State-owned commercial banks and foreign lenders have continuously consolidated the Belt and Road Initiative and expanded into new areas of business to align with China's new development pattern and advance the country's high-level opening up. As of the end of last year, the bank had followed up on more than 900 corporate credit granting projects in BRI-involved countries and regions, with total credit exceeding $269 billion. Between 2015 and 2019, BOC issued five series of BRI-themed bonds in seven currencies. The total amount was equivalent to $14.5 billion. China Construction Bank, as of the end of last year, had supported 342 projects in 60 BRI countries and regions, with a total financing quota of more than $50 billion. In addition, the outstanding balance of its international business guarantees reached $17 billion, covering projects in 112 BRI countries and regions. Standard Chartered, a UK-based international banking group, has extensive cooperation with domestic financial institutions and corporate clients in BRI countries and regions, said Jerry Zhang, executive vice-chairman and CEO of Standard Chartered Bank (China) Ltd, the group's local subsidiary. Standard Chartered participated in a large solar power project in the Middle East. The contractors concerned were Chinese companies. While some of the financing was provided by the Export-Import Bank of China and the China Development Bank, European manufacturers also contributed to the project, which involved multilateral development banks, such as the Asian Infrastructure Investment Bank and the African Development Bank.

https://global.chinadaily.com.cn/a/202304/11/WS6434b15ea31057c47ebb961b.html


What's New for March 2023

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • OECD Arrangement participants fail to clinch modernisation deals
  • Commitment to end international finance for fossil fuels is shifting billions but key countries are missing in action
  • Italy Vows to Support Fossil Fuel Projects At Least Until 2028 Despite COP26 Pledge to Cut Investments
  • SACE to insure up to $3 billion in corporate energy bill payments disrupted by Russia's war against Ukraine
  • Parliamentary question on SACE: Fossil fuel subsidies & potential conflict of interest
  • Italy waters down fossil fuel pledge as Sace backs gas
  • Netherlands contradicts COP26 promise, moves ahead to support 30 year oil and gas production project in Brazil
  • The changing face of MENA export credit agency-backed financing
  • IMF calls for scaling up Climate Finance
  • Powering up women in trade, treasury & payments
  • EXIM provided $600m to Lithuania to fight punative Chinese sanctions over relations with Taiwan
  • Asociación de Cooperativas Argentinas (ACA) Borrows $80m from FMO, FinDev Canada, Rabobank to Boost Farm Exports
  • Embraer closes US$ 200 million EXIM credit facility with Citibank
  • Polish ECA supporting US$73m (£60m) project to expand Angolan University

OECD Arrangement participants fail to clinch modernisation deals

(Global Trade Review, London, 15 March 2023) A meeting of the OECD Arrangement on export credits ended last week without an announcement of a breakthrough on any key planks in its modernisation agenda. The arrangement was created to avoid like-minded countries from undercutting each other on pricing but has been undermined by the fact that major export credit providers such as China and India are not members. Commercial banks, export credit agencies (ECAs), the European Union and governments who host export credit-supported projects have called for changes to minimum pricing, tenors and clear rules on sustainable financing to ensure that OECD ECAs remain competitive and can support a broad range of projects. Oil Change International, an NGO that campaigns for an end to public finance for fossil fuels, says it is disappointed that there was no apparent agreement on the Climate Change Sector Understanding (CCSU) aspect of the arrangement in order to boost incentives for green projects. OCI further notes that "OECD countries failed to conclude negotiations on climate friendly incentives to align Export Credit Agencies, the world’s largest international financiers of fossil fuels, with international climate goals", adding "the world cannot afford another wasted minute" and reminding them that 175 civil society institutions have called on the arrangement members to end support for fossil fuel projects by their ECAs.

https://www.gtreview.com/news/global/oecd-arrangement-participants-fail-to-clinc...


Commitment to end international finance for fossil fuels is shifting billions but key countries are missing in action

(Oil Change International, Washington, 15 March 2023) Promise Breakers, a report released today by Oil Change International, reveals that the Glasgow Statement, a joint commitment forged at the 2021 UN climate summit (COP26), is already shifting an estimated USD 5.7 billion per year out of fossil fuels and into clean energy, with the potential of a further 13.7 billion per year if all Glasgow Statement signatories fulfill their commitments. At COP26 in Glasgow, 39 countries and institutions pledged to end international public finance for fossil fuels by the end of 2022 and shift this money to clean energy. This report is the first international assessment of signatories’ implementation of the commitment since the passing of the end of 2022 deadline. The report reveals that while some high-income countries have kept their Glasgow commitment, a group of major providers of international public finance have broken their promise, including Germany, Italy, and the United States. The report contains a detailed report card on each signatories’ policies, with recommendations for improvement.

https://priceofoil.org/2023/03/15/new-report-commitment-to-end-international-fin...


Italy Vows to Support Fossil Fuel Projects At Least Until 2028 Despite COP26 Pledge to Cut Investments

 (Earth Org, Hong Kong, 28 March 2023) ) The new policy will allow Italy’s export credit agency SACE to support various fossil fuel projects, including exploration, production, storage, and distribution. Climate experts have strongly criticised the move, saying it would breach international commitments and slow down the country’s green transition. The new rules, presented by Premier Giorgia Meloni last week, will allow Italy’s state-owned export credit agency SACE to finance gas exploration and production projects until January 2026. Existing exemptions, which include projects deemed “strategic” for the nation’s energy and economic security, could postpone the date even further. Support for oil transport, storage, and refining projects will be allowed until 2024, and oil distribution until 2028. A deadline for gas transport and storage has yet to be defined.

https://earth.org/italy-fossil-fuel-projects/


SACE to insure up to $3 billion in corporate energy bill payments disrupted by Russia's war against Ukraine

(European Commisson, Brussels, 6 March 2023) The European Commission has approved, under EU State aid rules, an  amendment to an existing Italian guarantee scheme, including an up to €3 billion budget increase, for the reinsurance of natural gas and electricity trade credit risk in the context of Russia's war against Ukraine. The amendment was approved based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (‘TFEU'), recognising that the EU economy is experiencing a serious disturbance. Under the administration of SACE, the Italian Export Credit Agency, the scheme  ensures that trade credit insurance continues to be available to companies, avoiding the need for them to pay their energy bills in advance or within a few weeks, thus reducing their immediate liquidity needs. This measure will also make it easier for these customers to obtain a postponement of payment of their energy bills by up to 24 months, based on an agreement with their energy supplier. At the same time, it will ensure that trade credit insurance continues to be available to companies, avoiding the need for them to pay their energy bills in advance or within a few weeks, thus reducing their immediate liquidity needs. The reinsurance of natural gas and electricity trade credit risk was deemed necessary in the context of Russia's war against Ukraine.

https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1484


Parliamentary question on SACE: Fossil fuel subsidies & potential conflict of interest

(ReCommon, Rome, 29 March 2023) The decision by the government of Italy and SACE to break their climate promise made during COP26 in Glasgow has aroused strong indignation. SACE, Italy’s export credit agency, will continue to finance fossil fuel projects abroad until at least 2028, thus reinforcing its position as the leading supporter of the fossil fuel industry in Europe and sixth globally. This is an indignation so strong that it prompted the group Alleanza Verdi e Sinistra in the Chamber of Deputies to present an oral parliamentary question, aimed at clarifying three aspects:

  • whether the actions of the Government and SACE disregard the commitments made during COP26
  • whether the right steps will be taken to stop public investment and SACE’s guarantees for fossil fuel projects abroad linked to the extraction and transport of fossil fuels
  • whether there is a potential conflict of interest where the Chairman of the Board of Directors of SACE is also a member of the Board of Directors of Eni

ENI is an Italian global energy company, active at every stage of the value chain: from natural gas and oil to co-generated electricity and renewables, including both traditional and bio refining and chemicals

https://www.recommon.org/en/fossil-fuel-subsidies-and-potential-conflict-of-inte...


Italy waters down fossil fuel pledge as Sace backs gas

(Global Trade review, London, 22 March 2023) Italy has walked away from a pledge to end support for international fossil fuel projects by the end of last year, indicating it will continue to provide export credit cover for parts of the oil industry in the short term and delaying a decision to put an end date on its backing for the gas sector. Sace, the Italian export credit agency (ECA), yesterday published its long-anticipated plan for complying with its commitment alongside other nations at the 2021 Cop26 summit to “end new direct public support for the international unabated fossil fuel energy sector… except in limited and clearly defined circumstances that are consistent with a 1.5°C warming limit and the goals of the Paris Agreement”. Signatories were supposed to have nixed backing for the sector by the end of last year, but the Sace policy shows that the agency did not end support for all exports involving the oil or gas sectors by that deadline. The policy shows that Sace ended support for unabated gas-fired power generation in January this year, but gas exploration and production facilities will still qualify for support until 2026.

https://www.gtreview.com/news/europe/italy-waters-down-fossil-fuel-pledge-as-sac...


Netherlands contradicts COP26 promise, moves ahead to support 30 year oil and gas production project in Brazil

(Price of Oil, Washington, 23 March 2023) The Netherlands just contradicted its COP26 pledge to end public finance for fossil fuels by the end of 2022 and shift this money to clean energy by issuing a commitment to insure the Brazil Santos Basin Pre-Salt Pole oil and gas production project for around USD 321 million. The Netherlands published a policy implementing the commitment in November 2022, but it has major loopholes that allow continued fossil support by the Dutch Export Credit Agency (ECA) Atradius DSB. This includes a “transition period” in breach of the agreed end of 2022 deadline, allowing projects that have requested financial support in 2022 to still be approved in 2023.

https://priceofoil.org/2023/03/23/the-netherlands-contradicts-cop26-promise-move...


The changing face of MENA export credit agency-backed financing

(TXF, London, 1 March 2023) The volume of ECA business and the number of deals is down in the Middle East, but at the same time we are seeing higher volume and more deals in North Africa. Industrial diversification is driving the changes of a region in transition. There is a significant evolution taking place in the Middle East and North African (MENA) region in terms of export credit agency (ECA)-backed export and project financing - which over the last few years has largely mirrored the changing industrial outlook and direction of much of the region. Oil/gas revenues in those countries have increasingly become used in sectors such as oil/gas downstream activities, healthcare, social projects, renewable energy, high-tech and productive industries. At the same time, many of the ECAs and banks have now stopped financing new upstream oil & gas projects and are focused on supporting exports and viable projects in other sectors throughout MENA.

https://www.txfnews.com/articles/7513/The-changing-face-of-MENA-export-credit-ag...


IMF calls for scaling up Climate Finance

(IMF, Luxembourg, 1 February 2023) IMF Deputy Managing Director Bo Li at the EIB Group Forum 2023 spoke to the importance of the green transition - "away from fossil fuels that are subject to supply disruptions and volatility, and towards renewables such as wind and solar energy.  The growing impact of global warming reminds us of the urgency. From heatwaves in Europe and wildfires in North America, to droughts in Africa and floods in Asia: last year saw climate disasters on all five continents." He noted that without decisive action, things are set to get worse because "we are clearly not on the right trajectory for cutting global emissions and need to cut global emissions by 25‑50 percent by 2030 compared to pre-2019 levels to contain temperature rises to between 1.5 and 2 degrees celsius. Financing needed to meet adaptation and mitigation goals are estimated at trillions of US dollars annually until 2050 but so far, we are seeing only around 630 billion dollars a year in climate finance across the whole world—with only a fraction going to developing countries. This is particularly concerning—because emerging and developing economies have vast needs for climate finance. And it underlines why it’s so important for advanced economies to meet or exceed the pledge of providing $100 billion per year in climate finance for developing countries. This is not just the right thing to do, it is the smart thing to do."

https://www.imf.org/en/News/Articles/2023/02/28/sp022823-scaling-up-climate-fina...


Powering up women in trade, treasury & payments

(Trade Finance Global, London, 8 March 2023) President and Chair of the Export-Import Bank of the United States (EXIM) Reta Jo Lewis gave a keynote address to the Trade Finance Global’s Women in Trade, Treasury & Payments roundtable, urging multilateral organisations to take strides towards improving on the economic welfare of societies, saying leaders must do their part to recognise that advancing gender equity must be a top priority as they work to achieve the sustainable development goals set by the United Nations. She noted that "Multilateral organisations also have the ability to establish norms and, most importantly, use their financing and programming to create incentives for nations to adhere or inch closer to these norms", and that EXIM recognises its responsibility to promote gender equity in trade finance. In the U.S., there are approximately 13 million women-owned businesses, and they are growing at more than double the rate of all other businesses. More than nine million Americans are employed by women-owned businesses, which are generating an estimated $1.9 trillion in revenue adding that although female entrepreneurship is growing exponentially in the U.S. and globally, one of the largest obstacles for women-owned firms is a lack of access to capital and/or funding.

https://www.tradefinanceglobal.com/posts/powering-up-women-trade-treasury-paymen...


EXIM provided $600m to Lithuania to fight punative Chinese sanctions over relations with Taiwan

(Global Echo, Washington, 8 March 2023) In November 2021 the U.S. provided $600 million in an export credit agreement to help Lithuania withstand pressure from China and joined the EU's WTO lawsuit in support of Vilnius. Days after the establishment in 2021 of the “Taipei Representative Office in Lithuania,” Taiwan’s de facto embassy, Beijing downgraded diplomatic relations and blocked most trade with Vilnius over what it calls a violation of the One China policy. The action prompted the European Union to sue China at the World Trade Organization over “discriminatory trade practices” against Lithuania that it said threatened the integrity of the EU single market. Beijing denies instructing Chinese companies to stop doing business with Lithuanian partners. In March 1990, Lithuania became the first republic to break away from the Soviet Union by declaring itself an independent state, a decision the White House applauded.

https://globeecho.com/news/north-america/united-states/us-lithuania-in-talks-aim...


Asociación de Cooperativas Argentinas (ACA) Borrows $80m from FMO, FinDev Canada, Rabobank to Boost Farm Exports

(Microcapital Monitor, Boston, 10 March 2023) Asociación de Cooperativas Argentinas (ACA), a network of 143 agricultural cooperatives in Argentina, recently borrowed USD 80 million from three institutions, led by the Dutch development bank Financierings-Maatschappij voor Ontwikkelingslanden (FMO). FMO is lending ACA half of the total, and the Canadian government’s FinDev Canada and the Dutch cooperative Rabobank are each providing USD 20 million. ACA plans to use the cash as working capital in support of its exports of grains and seeds that it buys from cooperatives that represent 50,000 farmers. FinDev Canada is Canada's development finance institution (DFI), supporting the private sector in developing markets to promote sustainable development.

https://www.microcapital.org/microcapital-brief-asociacion-de-cooperativas-argen...


Embraer closes US$ 200 million EXIM credit facility with Citibank

(ARGS, London, 9 March 2023) Embraer has closed a US$ 200 million credit facility to finance purchases from direct suppliers in the United States. This financing is being provided by Citibank and guaranteed by the Export-Import Bank of the United States (EXIM), the country’s official export credit agency. This credit facility with EXIM and Citibank will support Embraer’s efforts to diversify its credit operations in the aviation market worldwide, providing the company with additional financing options and improving its loan profile.

https://airlinergs.com/embraer-closes-us-200-million-credit-facility-in-the-us/


Polish ECA supporting US$73m (£60m) project to expand Angolan University

(Construction Index, London, 30 March 2023) The project will extend the university and improve access to higher education. The project is being developed by a joint venture led by Quenda Business, a Polish project management, international business advisory and consulting company that operates across sub-Saharan Africa, particularly in Angola and the Democratic Republic of Congo. Quenda’s partner is Polish contractor Torhamer, a specialist in rail and infrastructure. Standard Chartered bank is acting as the social loan coordinator, bookrunner and coordinating bank, supported by the Polish export credit agency Korporacja Ubezpieczeń Kredytów Eksportowych (KUKE).

https://www.theconstructionindex.co.uk/news/view/poles-spearhead-angola-universi...


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