(Barrons/AFP, Paris, 15 November 2024) French energy giant TotalEnergies, recipient of Italian (& French?) ECA funding, was aware of accusations of abuses committed by soldiers charged with protecting its gas site in Mozambique as early as 2021. "Complaints of extortion, disappearances and even violence leading to the deaths of two fishermen are recorded in quarterly social reports written by teams of Mozambique LNG," TotalEnergie's subsidiary in the country, according to Le Monde. The reports were sent to the Italian export credit agency SACE, from which an Italian NGO, ReCommon, and Le Monde obtained them under a right of access to information legislation. TotalEnergies used hired guards of the local affiliate of UK security firm G4S linked to a former liberation figure and ex-minister of security in the 1980s. ECA-Watch noted in 2016 that Korean, French, Italian and Chinese ECAs were set to play a key role in the financing of two LNG projects planned in the north of Mozambique despite widespread concerns about gross human rights violations by local authorities.
https://blog.mondediplo.net/g4s-dans-les-eaux-troubles-du-marche-de-la-peur
(Philadelphia Tribune, 22 November 2024) The EU, U.S. and other countries are hammering out a plan to throttle tens of billions of dollars of financial support for foreign oil and gas projects, weeks before President-elect Donald Trump moves into the White House. Negotiators are working toward landing a deal at the Organization for Economic Co-operation and Development gathering in Paris by Thursday, according to people familiar with the matter. An agreement would be a culmination of more than a year of effort to expand existing rules that prohibit member nations’ export-credit agencies from financing unabated coal projects. It’s an about-turn for the U.S., which had effectively stalled work on the broader fossil fuel restrictions for months amid concerns from the country’s Export-Import Bank. But with Trump taking office in two months, it’s a last-ditch bid to lock in a climate policy that environmental advocates say be difficult for the new administration to reverse while freeing up multibillion-dollar funds for global clean energy projects. The group’s members have a longstanding gentlemen’s agreement that effectively allows them to use export-credit agencies to give preference to domestic companies in international deals without running afoul of WTO rules. Member countries have an incentive to abide by the policies since they help ensure a level playing field. Restricting export-credit agency support for fossil fuels is viewed as crucial to meet global climate goals, a year after nearly 200 countries agreed to transition away from polluting energy sources. “There aren’t many policy tools that Trump can’t undo, and this is one of the few,” said Laurie van der Burg, Public Finance lead at Oil Change International. Oxfam America notes that: “A ‘Trump-proof’ climate deal of this magnitude is mission critical for the Biden administration — not only to secure its legacy on climate progress, but also help safeguard every community, both in the U.S. and globally, from damaging storms, heat waves, and rising seas. The climate crisis won’t stop for a climate denier in the White House, and this is the last chance for the current administration to stop billions in global handouts to fossil fuel corporations." Nearly 300 green groups have urged Biden to block LNG expansion ahead of Trump.
https://www.phillytrib.com/news/business/europe-and-u-s-push-for-oil-funding-cur...
(Friends of the Earth, Washington, 21 November 2024) Today at the conclusion of the OECD Export Credit Group negotiations, participating nations failed to reach an agreement on fossil fuel finance, despite scientists’ repeated calls for urgent climate action. While no formal conclusion has been announced from the talks, the United States appears to have failed to secure an agreement. The proposal has already been championed by the European Union, UK, Canada, Norway and most recently, Australia. It would have potentially restricted financing for the entire fossil fuel value chain. Up to $40 billion per year could be shifted away from fossil fuels to renewable energy projects. This would have paved the way for the agreement to be presented as part of a climate finance package at COP29. Unlike the Paris Agreement, it would have been difficult for the Trump Administration to remove itself from just one piece of the arrangement.
https://foe.org/news/us-misses-finance-agreement/
(Global Trade Review, London, 27 November 2024) The two-week-long UN Climate Change Conference (Cop29) ended last week with a contentious pledge by wealthy countries to increase climate finance. While the commitment was criticised by developing nations as insufficient, objections from some of the world’s richest nations meant there was nearly no agreement at all. The landmark pledge of Cop29, nicknamed “the finance Cop” due to its supposed focus on funding the green transition, was an increase of climate finance from the wealthiest countries to the poorest from US$100bn to US$300bn a year by 2035. While this is a clear upgrade – and higher than the originally proposed US$250bn – it is far less than the US$1.3tn that developing countries had sought. It is also unlikely to be enough to mitigate the effects of climate change, with NGO WaterAid’s lead policy analyst for water, sanitation and hygiene finance, Lesley Pories, calling it a “death sentence for the millions on the climate frontlines”. Though the official text of the resolution calls for financing from “all public and private sources” to reach US$1.3tn a year by 2035, it is unclear in practice how this will materialise.
https://www.gtreview.com/news/sustainability/the-finance-cop-delivers-fragile-cl...
(Economic Times, Delhi, 21 November 2024) China is bolstering its export sector to counter potential tariff hikes by the incoming Trump administration. The nine-point plan includes expanded export credit insurance, increased financing for international trade, and support for cross-border e-commerce. These measures aim to mitigate the impact of anticipated US trade restrictions and maintain a favourable environment for Chinese exports.
https://economictimes.indiatimes.com/news/international/world-news/china-announc...
(BNN Bloomberg, Toronto, 19 November 2024) Colombia is hurrying to land a deal with the US that would unlock the first tranches of cash for a $40 billion climate investment plan before Donald Trump takes office. If that push fails, then China could be an option. Susana Muhamad, Colombia’s climate minister, said she would go to Washington in the coming weeks to try and secure initial finance for an ambitious strategy to overhaul her country’s fossil fuel-based economy in favor of green investments. The outlook for the deal is now more complicated that Trump won this month’s election, she said. It’s a race against time for the package, which mimics the Just Energy Transition Partnerships (JETPs) that have been signed between rich and developing countries, with a goal of speeding up the move away from fossil fuels. Colombia is looking for as much as $10 billion to come from international financial institutions and developed countries. The move may set a template for other countries looking to transition away from fossil fuels. Colombia is just one of the countries currently scrambling to lock in climate commitments from the US in the two months before Trump takes office. At the Organization for Economic Co-operation and Development, the Biden administration is making a last-ditch push for an international agreement restricting export-credit agency financing of foreign oil and gas projects, supporting an initial proposal made by the European Union.
https://www.bnnbloomberg.ca/investing/commodities/2024/11/19/trump-forces-colomb...
(Kyive Independent, Kyiv, 6 November 2024) Chinese state-owned company Sinosure that insures export supplies against the risk of non-payment has begun to refuse to cooperate with Russian entrepreneurs, Russian newspaper Vedomosti reported on Nov. 5, citing four unnamed sources from importing companies. Trade between Russia and China has reportedly surged by 121% since 2021, underscoring Beijing's role as Moscow's economic lifeline. One Chinese supplier told a Russian importer that the company refused to insure their deal because of the nature of the exported goods. Since July, China has tightened export controls on military and dual-use products, the Moscow Times reported. Beijing has positioned itself as neutral in the ongoing war but has deepened economic ties with Russia and become Moscow's leading source of dual-use goods, feeding the Russian defense industry.
https://kyivindependent.com/chinese-state-owned-company-reportedly-begins-refusi...
(JD Supra, Sausalito, 5 November 2024) The Minerals Security Partnership Finance Network (MSPFN), a joint financing body, was announced by the United States, the European Commission, the United Kingdom, Canada, Japan, Australia, and nine other nations on 23 September 2024 at the United Nations General Assembly in New York. The new financing initiative aims to enhance collaboration amongst export credit agency and development finance institutions to support financing for critical mineral projects. The MSPFN is a US-led financing initiative that stems from the Minerals Security Partnership (MSP); a framework established in 2022 by 14 governments and the European Commission to advance, diversify, secure, and sustain supply chains for CMs. The MSPFN was created to strengthen cooperation and promote information exchange and co-financing among participating institutions.
https://www.jdsupra.com/legalnews/landmark-minerals-security-partnership-4983753...
(New Civil Engineer, London, 19 November 2024) UKEF has launched a new product aimed at aiding British companies in securing international contracts. The Early Project Services Guarantee (EPSG) is the latest initiative to support firms offering engineering, design and technical services on a global scale. The EPSG is designed to assist overseas buyers who opt for British service companies in the initial planning phases of their projects. When an international buyer plans a major project and requires early work such as feasibility studies or conceptual designs, they can engage a UK design service firm. Under the EPSG scheme, this buyer can then seek a guarantee to secure a loan from a bank. This loan enables them to finance the early work provided by the UK business, with repayment terms spanning up to two years. Meanwhile, the UK service provider receives payment upon completion of services, contingent on the loan’s terms.
https://www.newcivilengineer.com/latest/uk-export-finance-offers-new-guarantee-t...
(BNN Bloomberg, Toronto, 13 November 2024) Italy’s state insurance and financial group will grant Saudi Arabia $3 billion in loan guarantees to help the kingdom develop a sprawling futuristic megacity. Insurer and export credit agency Sace agreed on 80% guarantees for loans from international banks backing Neom, the ambitious project to build a new urban area that will be bigger than Belgium, according to people familiar with the matter.
https://www.bnnbloomberg.ca/business/company-news/2024/11/13/saudi-neom-gets-3-b...
(Financial Times, London, 7 November 2024) Britain has agreed a £4bn air defence deal with Poland, the largest-ever export contract between the two countries, in the wake of Russia’s invasion of Ukraine. The UK will equip Polish forces with a ground-based air defence system capable of countering threats such as cruise missiles and fighter jets at ranges of more than 40km. The system, known as the Common Anti-Air Modular Missiles — Extended Range or CAMM-ER, is manufactured by European missile maker MBDA. MBDA is owned by BAE Systems and Airbus, both with a 37.5 per cent stake, with Italy’s Leonardo holding the balance.
https://www.ft.com/content/58485e8c-e872-40a9-9b2d-c692f3cf2cc2
(Washington Examiner, Washington, 10 November 2024) The U.S. Export-Import Bank faces scrutiny over a $2.5 billion giveaway to green energy development in Angola that benefits foreign companies with ties to China and the Angolan president, despite the bank’s claims that it will support thousands of American jobs. The Ex-Im Bank, led by Biden administration appointee Reta Jo Lewis, loaned over $900 million in June 2023 and another $1.6 billion to American company Sun Africa, which is in charge of developing solar energy plants, mini-grids, and storage and water treatment facilities in Angola. The largest-ever Ex-Im loans were issued as part of the Biden administration’s flagship global infrastructure partnership and the China and Transformational Exports programs, which seek to support American companies competing against China. The bank touts that the financing will support over 4,700 American jobs. Despite the bank’s statements that the financing agreement benefits American exports and jobs, the announced suppliers are foreign companies and include firms close to Angolan President João Lourenço or frequent contractors to the Chinese government, the Washington Examiner can reveal.
https://www.washingtonexaminer.com/policy/foreign-policy/3224585/exim-bank-angol...
(Mining.COM, Toronto, 21 November 2024) Troilus Gold (TSX: TLG) continues to receive the financial backing of global export credit agencies (ECAs), this time from Export Development Canada (EDC), to support the development of its copper-gold project in Quebec. On Thursday, the company announced a new letter of intent (LOI) from EDC for up to $300 million. This, together with the LOIs recently signed with the export credit agencies of Germany, Finland and Sweden, brings the total potential funding to $1.3 billion.
https://www.mining.com/troilus-gold-brings-potential-funding-from-ecas-to-1-3-bi...
