FERN

Press release – International NGO Call on Goverments to #EndCoalFinance

FOR IMMEDIATE RELEASE

11 June 2014

International NGOs Call on Governments to #EndCoalFinance

On Monday, June 16 the Organization for Economic Cooperation and Development (OECD)’s Export Credit Group will meet to discuss climate and energy related financing through Export Credit Agencies – public agencies that fund or guarantee private corporations from their home country to invest or export overseas.

International civil society organizations are targeting governments today, Wednesday, June 11, to call for an end to public finance for coal. A Twitterstorm will urge OECD governments to end financing and guarantees for coal through Export Credit Agencies.

Last week in Brussels, G7 nations confirmed their commitment “to the elimination of inefficient fossil fuel subsidies and continued discussions in the OECD on how export credits can contribute to our common goal to address climate change.”

In the OECD Export Credit Group meeting, governments will be considering a proposal from the United States and the United Kingdom to open a process to adopt restrictions for financing high carbon intensity projects (primarily coal power plants).

This opportunity to end Export Credit Agency financing for coal is a key part of the larger effort to end public financing for fossil fuels and high carbon projects.(1)

Regine  Richter, from Urgewald in Germany says: “Guarantees worth billions from the country of energy transition? While climate experts warn that more coal plants mean the end of the 2° C target?! It’s time to stop this contradiction and finish coal support through Hermes guarantees.”

Lucie Pinson, Amis de la Terre France says: “After ending coal support through its development agency last year, France has to finish its job if they are serious about fighting climat change. France could not give the lead to the COP21 in Paris next year if Coface keeps supporting coal power plants overseas whose emissions account for 14% of domestic emissions!”

Between 2007 and 2013 public financial institutions provided at least $51 billion in funding for coal projects abroad.  The largest proportion of this comes from national Export Credit Agencies (ECAs) from OECD countries, which have provided at least $32 billion over this period or 63 percent of total public support. (2)

Over the past year, the World Bank, the European Investment Bank, and the European Bank for Reconstruction and Development have committed to ending support for coal projects except in limited circumstances. The US, the UK, the Netherlands and Nordic countries have made similar commitments to end public finance for coal projects overseas.

Given the improvements in multilateral practice, it is increasingly likely that OECD Export Credit Agencies could end up as a place of last resort for carbon intensive industries that are no longer able to secure funding due to their high risk and poor environmental performance. 

For more information on the Twitterstorm, go here: http://www.eca-watch.org/node/3600

1. According to the International Energy Agency (IEA), to stay within a 2°C global temperature rise – a level climate scientists believe would allow us to avoid the worst impacts of climate change: at least two thirds of current proven fossil fuel reserves need to stay underground.

2. According to data compiled by the Natural Resources Defense Council (NRDC) and Oil Change International. These staggering statistics probably under-estimate the total amount due to lack of reporting by many of these shadowy institutions.

Still exporting destruction: A civil society assessment of Export Credit Agencies’ compliance with EU Regulation (PE-CONS 46/11)

November 14, 2013

ECA Watch has prepared this ‘shadow report’ — with the support of other civil society groups — in order to assess current ECA practice in relation to issues such as transparency, public accountability and more generally, their compliance with the EU’s objectives on external action. It is based on ECAs’ own annual public reports, questionnaires sent to Export Credit Agencies (ECA), and freedom of information requests. The report starts by giving some background information regarding ECAs and how they are regulated. It analyses ECAs’ answers to ECA Watch’s questionnaires, and highlights a couple of case studies to illustrate our concerns. It analyses the annualreports that Member States sent to the EC and highlights points that should be investigated further by the EC. It concludes by indicating options for the European Commission, Council and Parliament to improve the regulatory framework for EU ECAs.

Still exporting destruction: A civil society assessment of Export Credit Agencies’ compliance with EU Regulation (PE-CONS 46/11)

November 14, 2013

ECA Watch has prepared this ‘shadow report’ — with the support of other civil society groups — in order to assess current ECA practice in relation to issues such as transparency, public accountability and more generally, their compliance with the EU’s objectives on external action. It is based on ECAs’ own annual public reports, questionnaires sent to Export Credit Agencies (ECA), and freedom of information requests. The report starts by giving some background information regarding ECAs and how they are regulated. It analyses ECAs’ answers to ECA Watch’s questionnaires, and highlights a couple of case studies to illustrate our concerns. It analyses the annualreports that Member States sent to the EC and highlights points that should be investigated further by the EC. It concludes by indicating options for the European Commission, Council and Parliament to improve the regulatory framework for EU ECAs.

The Baku-Tblisi-Ceyhan Pipeline: exporting an ‘environmental timebomb’

 

(August 19, 2005) The Baku-Tiblisi-Ceyhan (BTC) pipeline  is the most controversial pipeline in the world. This doubious honour is due to its damaging geo-political, environmental and social impacts, its role in augmenting the power of corporate interests over national governments, and its alleged violation of the European human rights law and Turkey’s accession partnership, as well as allegations of corruption, imcompetence and malpractice. European export credit agencies are among the financiers of the BTC pipeline.

Export Credit Debt – How ECA support to corporations indebts the world’s poor

(June 10, 2008) This briefing note by Both ENDS and FERN highlights the fairly hidden role of Export Credit Agencies (ECAs) in the debt problems of many developing countries. It explains how export credit debt comes about, and clarifies how the cancellation of export credit debt is written off with Official Development Assistance (ODA) money.  It concludes with suggestions about how ECAs should change, in order to become coherent with international efforts to reduce poverty through sustainable development.

The EU – India FTA

(March 31, 2009) A new FERN funded report by Kavaljit Singh on the EU-India Free Trade Agreement with a strong focus on the banking sector. The report asks the question who benefits from FTAs and shows that opening up India for European banks can have negative impacts for India

From Rome to Lisbon: a guide to the EU and its role in developing trade and investment agreements

(August 23, 2009) Liberalising investments with the aim of opening markets appears to be incompatible with sustainable development of resource-based activities. FERN has therefore published a briefing note, “From Rome to Lisbon,” a guide to the EU’s investment strategy. The guide explores the EU’s controversial role in developing investment provisions in the free trade agreements it concludes with third countries.

Avoiding solutions: how export credit agencies help companies that continue to evade tax

(September 17, 2009) This briefing note shows the folly of G-20 plans to increase ECAs’ capacity without ensuring they bring in regulations aimed at halting their support for companies that take advantage of tax avoidance loopholes such as offshore financial centres. It ends with a series of recommendations for ensuring ECAs are held to government policies.

European ECA support to carbon intensive industries

(June 15, 2010) This research paper by Profundo, conducted for FERN analyses the involvement of all 21 ECAs of EU member countries in the financing of carbon-intensive industries during the period 2004-2009.

 

Asia Pulp & Paper (APP) default on its obligations to Export Credit Agencies

(June 11, 2012) Press release launched on the day that more than 30 European non governmental organisations (NGOs)  delivered a letter calling on governments not to fund a new pulp mill proposed by Asia Pulp and Paper (APP), one of the world’s most controversial pulp and paper companies. The plant is planned to be build in Sumatra, Indonesia where APP is estimated to have already pulped more than two million hectares of natural rainforests.