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 September 2024

"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?

Western nations join forces to break China’s grip on critical minerals

(Financial Times, New York, 23 September 2024) Coalition of 14 governments announces financing network for projects to provide raw materials required by tech industry. Western nations are directing their development finance and export credit agencies to work with private industry to support critical minerals projects, in a drive to break China’s chokehold over a sector that is essential for high-tech industries. The Minerals Security Partnership, a coalition of 14 nations and the European Commission, will unveil a new financing network at an event in New York on Monday as they try to ramp up international collaboration and pledge financial support for a huge nickel project in Tanzania, backed by mining company BHP.

https://www.ft.com/content/2984ae03-df15-420b-89cc-9ad8337014a9

Rich Nations Running Out of Time to Curb Oil and Gas Funding

(Bloomberg, 17 September 2024) A group of developed nations will make a new push to resolve differences amid fading prospects for a deal to restrict funding of foreign oil and gas projects by their export credit agencies. Restricting export credit agencies is seen as a potentially important tool in curbing the flow of financing to fossil fuels projects. Group of 20 nations offered more than $30 billion for such ventures in 2022, led by Canada and South Korea, according to data compiled by Oil Change International, a climate advocacy group.

https://www.bnnbloomberg.ca/investing/2024/09/17/rich-nations-running-out-of-tim...

Critical Minerals Security Partnership may not be enough for Australia

(Australian Strategic Policy Institute, Canberra, 25 September 2024) Fourteen countries this week took what they intended to be a big step in countering China’s dominance of critical minerals supply. But it’s unclear whether the initiative will restore competitiveness of Australian production and investment in the face of massive subsidies offered by China and, in response, the United States. The Minerals Security Partnership, a coalition of 14 countries, including the G7, Australia, India, South Korea, and European Union members, announced plans for a finance network to boost investment in critical metals. The initiative will tap into domestic export credit agencies and development finance institutions to attract private sector capital to produce, extract, process and recycle critical minerals, especially in riskier markets. The partnership seeks to lower investment risks and drive global supply chain resilience by providing guarantees and concessional financing. Australia’s economic prosperity and national security are intrinsically linked to the exploitation of its abundant resources, notably critical minerals. These minerals are the new oil. They’re the building blocks for everything from emerging technology to energy transition. Although Australia has vast reserves, its critical mineral mining and processing are still threatened by the intense subsidy war between the US and China.

https://www.aspistrategist.org.au/critical-minerals-security-partnership-may-not...

Deutsche Bank & ECAs finance $3.1 billion Indonesian fossil fuel project

(Risk Net, London, 26 September 2024) Last year, Deutsche Bank was selected as sole hedge co-ordinator and hedge arranger for a landmark $3.1 billion project-financing deal in Indonesia. Deutsche Bank declined to say who the client was, only that it was a processing and petrochemical company that wanted to modernise and expand an oil and gas refinery in the country. The project is part of Jakarta’s strategy for reforming the country’s oil and gas sector. Indonesia’s economy remains heavily dependent on oil and gas, and yet for several years has imported far more of the commodity than it has produced. The $3.1 billion project-financing deal was one of the largest ever done in Indonesia, involving three export credit agencies and 22 commercial lenders.

https://www.risk.net/awards/7959972/deal-of-the-year-deutsche-bank

Switzerland still handing out fossil fuel finance like candy

(Swiss Climate Rambles, Berkely, 23 September 2024) According to its own website, the Swiss government’s export risk insurance agency SERV (Swiss Export Risk Insurance) has approved insurance for 7 gas projects with a total delivery value of CHF 3,375 million (or US$3,967 million at the current exchange rate) since the CETP took effect. The fossil fuel projects which SERV insured in 2023 and 2024 are listed in the following table. (Their delivery value may be larger than the value insured by SERV.) Switzerland is also the only country which has explicitly weakened its CETP policy. In March 2023, SERV pledged to end all its fossil fuel finance, with exemptions only for projects in line with the Paris Agreement’s 1.5°C goal. In July 2024, Oil Change International revealed that the agency had quietly watered down its policy by allowing SERV to fund any gas project it considers is in the “economic, foreign, trade & development policy interests of Switzerland”.

https://swissclimaterambles.substack.com/p/switzerland-still-handing-out-fossil

US Ex-Im Bank Eyes Investment in Another Mozambique LNG Project

(Bloomberg, New York, 12 September 2024) The US Export-Import Bank is considering funding a liquefied natural gas project led by Eni SpA off the coast of Mozambique, years after investing in an onshore facility to produce the fuel that’s been delayed by security issues and opposed by environmental groups. Eni’s planned Coral North floating LNG plant is listed by the official export-credit agency of the US, known as Ex-Im, as a pending project. “The financing amount would be disclosed upon final board approval,” the bank said in an emailed response to questions, declining to give a timeline for the decision.

https://www.bloomberg.com/news/articles/2024-09-12/us-ex-im-bank-eyes-investment...

Shifting and unlocking trillions for a just energy transition

(Oil Change International, Washington, 24 September 2024) Rich countries can mobilize well over $5 trillion a year for climate action at home and abroad by ending fossil fuel handouts, making big polluters pay, and changing unfair global financial rules. This briefing, endorsed by 36 civil society organizations, is published as global leaders meet at Climate Week NYC and the United Nations General Assembly ahead of COP29, where leaders must agree on a new global climate finance target (NCQG). This target must be at least $1 trillion annually in grants and grant-equivalent finance and is essential for countries to deliver last year’s commitment to transition away from fossil fuels. Only strong finance targets will unlock strong national climate plans (NDCs) due in 2025 that phase out fossil fuels. A new Oil Change briefing reveals how governments in North America and Europe are preparing to waste hundreds of billions of taxpayer dollars on these ineffective technologies, further benefiting the fossil fuel industry, despite their record profits. They add that carbon capture has a 50-year record of failure and ask why governments [and ECAs] are throwing billions of dollars at it?

https://www.oilchange.org/publications/road-to-cop29-shifting-and-unlocking-publ...

Rich countries could raise $5tn of climate finance a year, study says

(Guardian, London, 24 September 2024) Rich countries could raise five times the money that poor countries are demanding in climate finance, through windfall taxes on fossil fuels, ending harmful subsidies and a wealth tax on billionaires, research has shown. Developing nations are asking for at least $1tn (£750bn) a year of public funds to help them cut greenhouse gases and cope with the impacts of extreme weather. Research by the pressure group Oil Change International, published on Tuesday, shows that rich countries could generate $5tn a year from a combination of wealth and corporate taxes, and a crackdown on fossil fuels. A wealth tax on billionaires could generate $483bn globally, while a financial transaction tax could raise $327bn. Taxes on sales of big technology, arms and luxury fashion would be another $112bn, and redistributing 20% of public military spending would be worth $454bn if implemented around the world. Stopping subsidies [from OECD ECAs?] to fossil fuels would free up $270bn of public money in the rich world, and about $846bn globally. Taxes on fossil fuel extraction would be worth $160bn in the rich world, and $618bn globally.

https://www.theguardian.com/global-development/2024/sep/24/rich-countries-could-...

UK Steps Up Export Deals to French-Speaking Africa as has China

(BNN Bloomberg, Toronto, 7 September 2024) The UK has stepped up business in French-speaking West and Central Africa as it seeks new frontiers for its exports. UKEF was backing transactions in francophone Africa worth a cumulative £1 billion ($1.3 billion) at the end of the 2023-4 financial year, up from just £3 million in 2017-8. These countries now represents about 13% of UKEF’s portfolio on the continent. Meanwhile, China’s export credit agency Sinosure is increasingly dominant. China’s Sinosure has backed projects to support the country’s Belt and Road Initiative, a global development push that brought more than $120 billion of Chinese construction contracts and investments to Africa in its first 10 years, according to a study by the Green Finance and Development Center at Shanghai-based Fudan University. China is not bound by the same rules as the UK and France, which are members of the OECD. The OECD has in the past few years made it easier for ECAs to cover costs in the recipient’s country. Both UKEF and Bpifrance Assurance Export require at least 20% of a transaction’s value to come from businesses in their country.

https://www.bnnbloomberg.ca/business/international/2024/09/07/uk-steps-up-export...

The real effects of trade financing by export credit agencies

(Centre for Economic Policy Research, London, 9 February 2024) Trade finance subsidies, usually provided by export credit agencies, are the predominant tool of industrial policy. This column discusses the effect of the effective shutdown of the Export–Import Bank of the US (EXIM) from 2015—2019 on firm outcomes. It finds that firms which previously relied on EXIM support saw a 18% drop in sales after the agency closed, driven by a reduction in exports. Firms affected by the shutdown also laid off employees and curtailed investment. Overall, export credit subsidies can boost exports even in countries with well-developed financial markets, without necessarily leading to a misallocation of resources.

https://cepr.org/voxeu/columns/real-effects-trade-financing-export-credit-agenci...

Ukranian ECA insures first investment loan against war risks

(Government of Ukraine, Kiev, 16 September 2024) The Export Credit Agency (ECA) has signed the first war risk insurance contract for an investment loan. This was announced by First Deputy Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko during the event “Economic Policy of Ukraine. Recovery During the War” in Kyiv on 16 September.

https://www.kmu.gov.ua/en/news/eka-zastrakhuvalo-pershyi-investkredyt-vid-voienn...

UKEF pushes Titanic builder Harland & Wolff into administration

(Splash 247, Singapore, 17 September 2024) Harland & Wolff, the owner of the Belfast shipyard that built the Titanic, has announced that it will be entering into administration this week after failing to find new funding following the UKEF rejection of the company’s request for a £200m facility. The company said its request for a £200 million (US$260 million) loan from the UK government's export credit agency UK Export Finance had been had been rejected, leaving it in financial trouble.

https://splash247.com/titanic-builder-harland-wolff-heads-for-administration

AGA seeks to raise USD 6.5bn for major Aussie green ammonia project

(Renewables Now, 13 September 2024) Allied Green Ammonia Pty Ltd has hired Affinity Capital Group as a lead manager and strategic financial adviser to help it raise about USD 6.5 billion (EUR 5.90bn) for the development and construction of a large-scale green hydrogen and ammonia facility in the Northern Territory of Australia. The company is currently in negotiations for preapproval for about 70% of the engineering, procurement and construction contract value from the Spanish Government Export Credit Agency CESCE.

https://renewablesnow.com/news/aga-seeks-to-raise-usd-65bn-for-major-aussie-gree...

Britain plans to reopen Cuba export credit coverage

(Journal of Commerce, London, 26 September 2024) Cuba and Britain have agreed to reschedule $27.7 million of short-term debt owed by the communist-ruled island, opening the way for London to resume medium-term export credit cover to Havana.Britain's government-funded Export Credit Guarantee Department, which withdrew medium-term cover in 1983, said the deal was signed in London last week with Cuban central bank President Francisco Soberon. Cuba, which has more than $11 billion in foreign debt, already has such cover with France, Spain and Italy. British businesses have long complained that this put them at a disadvantage to their European competitors. UK Export Finance and the Government of Cuba are working together to identify trade opportunities, particularly related to renewable energy and tourism infrastructure. A number of UK companies have already expressed an interest in potential projects on the island. UKEF can consider short-term (less than 2 years) transactions where payments are secured by a non-confirmed Irrevocable Letter of Credit,

https://www.joc.com/article/britain-plans-to-reopen-cuba-credit-coverage-5342690

Russian ECA decries fake news re Bangladesh nuclear power plant embezzlement

(Business Post, Dhaka, 11 September 2024) Russia has said those who produce and spread "fake news" about alleged embezzlement at Bangladesh's Rooppur Nuclear Power Plant deliberately attempt to “discredit” this ambitious project and to “undermine” beneficial relations between Moscow and Dhaka. As of September 3, 2024, approximately US$7.8 billion out of US$11.9 billion provided by Russia to Bangladesh under state export credits for the implementation of the Rooppur NPP project, has been utilised. This amount includes transactions under two separate agreements: US$491.3 million under the first agreement dated January 15, 2013 (this credit amounted up to US$500 million, and its utilization period expired in 2017), and US$7.3 billion under the second agreement dated July 26, 2016. The full amount of the second export credit is US$11.38 billion out of which 64% has been used, and its utilisation period expires on December 31, 2024. [According to an 18 August 2024 BanglaNews article, ousted Bangladesh Prime Minister Sheikh Hasina, her son Sajeeb Wazed Joy and niece Tulip Siddiq embezzled US$5 billion from the overpriced US$12.65 billion Rooppur nuclear power plant through Malaysian banks, according to a report by Global Defense Corporation.

https://businesspostbd.com/diplomacy/moscow-decries-fake-news-about-ambitious-ro...

What's New for August 2024

"What's New!" is a periodic update to keep you informed of the latest on the Export Credit Agency 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!

Out With the Old, Slow With the New

(International Institute for Sustainable Development, Winnipeg, 27 August 2024) Countries are underdelivering on fossil-to-clean energy finance pledge. This report analyzes the progress made by Clean Energy Transition Partnership (CETP) signatories on shifting international public finance away from fossil fuels and into clean energy. It finds that although significant progress has been made on cutting finance for fossil fuels, signatories are not increasing renewable investment at the same scale. At the United Nations Climate Change Conference (COP) in November 2021, 39 countries and public finance institutions signed the Clean Energy Transition Partnership (CETP), a joint commitment to end international public finance for fossil fuels by the end of 2022 and prioritize international public finance for clean energy. To realize the CETP's transformative potential, new policies are needed to boost clean energy financing. All high-income signatories need to review and update their policies! The Financial Times notes that a group of more than 30 countries cut public funding for fossil fuel projects overseas by up to $15bn last year, a report has found, although the US has continued to pour billions into oil and gas finance.

https://www.iisd.org/publications/report/countries-underdelivering-fossil-clean-...

Biden Urged to Make EXIM Stop Fueling Climate Crisis

(Common Dreams, Portland, 7 August 2024) Climate advocates on Wednesday formally urged the Biden administration to instruct the United States' export credit agency to stop financially supporting activities that are fueling the climate emergency. "Over the last two centuries, human-caused greenhouse gas emissions have led to global warming of 1.1ºC above preindustrial levels by 2020 and caused detrimental changes in Earth's climate," Friends of the Earth (FOE) and the Global Law Alliance for Animals and the Environment wrote to U.S. Secretary of State Antony Blinken. Their letter calls on Blinken to "make a determination pursuant to the Chafee Amendment in the Charter of the U.S. Export-Import Bank... that EXIM should deny applications for financial support for all activities and projects whose life-cycle emissions intensity substantially contributes to greenhouse gas emissions and the climate crisis."

https://www.commondreams.org/news/us-export-import-bank

Canada's EDC nursing steep losses from billions loaned to Thames Water

(Water Briefing, London, 10 August 2024) Canada’s state-backed export credit agency is reportedly nursing steep losses after lending debt-ridden Thames Water as much as a billion Canadian dollars. The British utility, which has said it could run out of cash by next June, received five loans from Export Development Canada (EDC) between 2018 and 2022 after the Canadian pension fund Omers had invested. The total value of the loans was between C$750m and C$1.45bn (between £422m and £820m), EDC said, while declining to give an exact figure. EDC sold the loans at a deep discount in recent weeks, according to the Financial Times, which cited unnamed investors. EDC declined to comment on whether it had lost money. A spokesperson said: “EDC has been carefully following the recent challenges encountered by the utility and with the regulator’s recent determination and Omers’ decision to write down its stake, we are assessing the best course of action to manage our loan exposure with the company.

https://waterbriefing.org/home/finance-and-risk/item/22504-export-development-ca...

Ukraine's State Property Fund Plans ECA War Risk insurance

(Ukraine Business News, Kyiv, 26 August 2024) The State Property Fund of Ukraine (SPFU) is actively seeking opportunities to expand export insurance instruments to cover war risks for privatization objects, said the head of SPFU, Vitaliy Koval. The SPFU is also appealing to international insurance companies with a proposal to expand export insurance instruments and involve them in covering war risks. This will help demonstrate to international insurers such as Czech EGAP, Japanese JICA, export credit agencies from Germany (Euler Hermes), France (Bpifrance Assurance Export), Italy (SACE), British (UK Export Finance), and Swedish (EKN) the presence of real demand for such services and will contribute to the activation of their work in Ukraine,” said Koval.

https://ubn.news/the-state-property-fund-plans-to-introduce-military-insurance-f...

EU launches export credit facility for Ukraine

 (Global Trade Review, London, 2 August 2024) The European Union has launched an inaugural risk-sharing facility for the export credit industry, with an initial €300mn pilot aimed at boosting SME exports to buyers in war-torn Ukraine. The move comes after years of discussions in Brussels over a potential EU export credit facility with the Commission first floating the idea of such an instrument in 2021, citing “harsh competition” in key markets. The facility will extend guarantees to export credit agencies (ECAs) for transactions involving European SMEs and small mid-caps looking to export goods and services to buyers in the Ukrainian market. It is hoped the export credit facility will drive an uptick in European exports to Ukraine and support Kyiv’s reconstruction plan, forecast by the World Bank to cost US$486bn over the next decade.

https://www.gtreview.com/news/europe/eu-launches-export-credit-facility-for-ukra...

India's RIL secures over $7 billion in offshore finance

(Hindu Business Line, Mumbai, 7 August 2024) Reliance Industries (RIL), India's largest private sector company, secured over $7 billion in various offshore financing initiatives in FY24, and it would continue to monitor financial markets to seize suitable opportunities for capital raising to support its growth plans.. It obtained $4.45 billion in syndicated term loans facilities offshore. RJio also secured $2.2 billion to finance equipment and services for its pan-India 5G rollout comprising first-ever Finnish Export Credit Agency (Finnvera) supported facilities of $1.6-billion equivalent and $600-million equivalent facilities from Canadian Export Credit Agency. It also tied up $625 million with Korean Export Credit Agency to finance the purchase of floating, production, storage and offloading vessel in the oil and gas business.

https://www.thehindubusinessline.com/companies/ril-secured-over-7-billion-in-off...

Arab oil and gas sector attracted investments worth $406bn over 22 years

(Arab News, Jeddah, 7 August 2024)  RIYADH: Arab nations have attracted $406 billion in investments from 356 foreign and regional companies in the oil and gas sector over the past 22 years, according to recent data from the Arab Investment and Export Credit Guarantee Corp., also known as Dhaman. During this period, which spans from January 2003 to May 2024, the region has seen the execution of 610 projects. The US has emerged as the leading investor, with 85 projects representing approximately 14% of the total. In terms of investment costs, Russia has taken the lead, contributing $61.5 billion, which constitutes about 15.2% of the total investment. The Middle East remains the largest holder of proven oil reserves globally. As of 2023, it accounts for approximately 55.5% of the world’s known oil reserves, according to the global statistics platform Statista. However, the region’s share has declined from nearly 63% in 1960 to less than 56% by 2020. Future projections indicate a continued decline in proven oil reserves in the Arab region. In other news Saudi Arabia is investing in a gigantic Red Sea tourism alternative to oil, with a $3.8bn loan raised by the Saudi government-owned Red Sea Development Company. Due for completion in 2030, the so-called ‘giga-project’ will spread across 22 of the 90 islands that form an archipelago off Saudi Arabia’s west coast, as well as inland, and offer 50 hotels with 8,000 hotel rooms. The first ECA green loan in Saudi Arabia was a $258m loan last year that German credit insurer Euler Hermes structured alongside Crédit Agricole CIB and HSBC. The proceeds were for the Ministry of Finance to acquire 842 buses for the new Riyadh public transport network from Daimler’s bus subsidiary in Germany. Another ECA loan covers the purchase of 50 electric vertical take-off and landing (eVTOL) jets from Lilium GmbH under a Saudi Export Import Bank export credit insurance policy supporting Saudi non-oil trade.

https://www.arabnews.com/node/2564311/amp

Export credit agencies roar back in Africa

(Global Trade Review, London, 31 July 2024) There was a rebound in export credit agency activity in Sub-Saharan Africa last year, as agencies struck big-ticket deals across infrastructure and renewable energy sectors, fresh data shows. In its annual State of the Industry Report, the Berne Union reveals that export credit agencies (ECAs) and insurers recorded US$23bn in new medium and long-term (MLT) business in Sub-Saharan Africa in 2023, marking a resurgence in activity following a lull period in the immediate aftermath of the Covid-19 pandemic. In its annual State of the Industry Report, the Berne Union reveals that export credit agencies (ECAs) and insurers recorded US$23bn in new medium and long-term (MLT) business in Sub-Saharan Africa in 2023, marking a resurgence in activity following a lull period in the immediate aftermath of the Covid-19 pandemic. New ECA and insurer-backed transactions worth US$12bn were signed in Sub-Saharan Africa in 2022, and US$14bn in 2021, says the Berne Union, which represents ECAs, multilateral insurers and commercial underwriters. But last year an “infrastructure boom” triggered a rebound in the export finance market.

https://www.gtreview.com/news/africa/export-credit-agencies-roar-back-in-africa/

UKEF reveals £8.8bn government support for UK firms in 2023/24

(Insider Media, Manchester, 1 August 2024) Businesses across the UK benefited from £8.8bn of funding support underwritten by UK Export Finance (UKEF) in the 2023/24 financial year. As the UK government’s export credit agency, UKEF provides loans, guarantees and insurance to help businesses sell their products around the world. The agency's support in the last financial year enabled 650 UK companies to win or undertake export contracts – an average of almost two businesses securing export financing every day of the year. Businesses across the UK benefited from £8.8bn of funding support underwritten by UK Export Finance (UKEF) in the 2023/24 financial year.

https://www.insidermedia.com/news/national/ukef-reveals-8.8bn-for-support-for-uk...

The Role of Export Finance in Global Shipping’s Sustainable Growth

(Hellenic Shipping News, Cyprus, 12 August 2024) From mitigating risks associated with financing large-scale maritime projects to promoting sustainability and compliance, export finance plays a pivotal role in the shipping industry. Shipping moves 11 billion tons of goods each year, amounting to 1.5 tons per person worldwide, underscoring its indispensable role in international trade and economic development. Therefore, export finance strengthens the financial backbone that facilitates global trade operations. Investments in modernizing fleet technologies can lead to significant reductions in emissions, operational costs, and improved competitiveness on a global scale. While the global shipping industry represents a critical component of international trade, its operations have significant negative impacts on the environment, ranging from emissions to disturbances in marine ecosystems. In fact, even though maritime shipping is the most carbon-efficient method of transporting goods, it still accounts for 3% of all CO2 emissions worldwide. To achieve massive measurable impact in the shipping industry, strategic initiatives focusing on sustainable technologies and innovative financing solutions are paramount. Export finance [could act] as a key enabler by providing the necessary funding and financial instruments to support these large-scale retrofitting projects.

https://www.linkedin.com/pulse/role-export-finance-global-shippings-sustainable-...

Cesce backs green loan for Iberdrola renewable expansion

(Global Trade Review, London, 5 August 2024) Spain’s export credit agency Cesce has agreed to cover a €500mn green syndicated loan for Iberdrola, backing its renewable expansion plans globally. The 15-year facility will help fund solar photovoltaic, wind and battery projects in the US, Italy and Australia. The total renewable capacity financed will reach 897MW and is expected to be operational between 2025 and 2026,” Iberdrola says. The facility furthers the Spanish energy company’s goal of diversifying its financing pool and brings its overall volume of export credit agency (ECA)-covered loans to a total of €2.5bn, it says. Last year, Norway’s ECA guaranteed a €500mn loan from Citi for a wind farm off the UK coast.

https://www.gtreview.com/news/sustainability/cesce-backs-green-loan-for-iberdrol...

UK & Polish ECAs target green exports with €249 million for Turkish solar project

(UK Government, London, 8 August 2024) UK Export Finance (UKEF) and KUKE, the UK and Polish export credit agencies, have guaranteed a €249 million loan being arranged by Standard Chartered Bank for Turkish renewable energy investment company Kalyon Enerji, enabling the construction of Turkey’s second-largest solar project to date. This deal is expected to support UK jobs in the renewable-energy sector supply chain, particularly in the Midlands.

https://www.gov.uk/government/news/uk-and-poland-target-green-exports-with-249-m...

UKEF to finance Cambodia’s infra for exports

(Khmer Times, Phnom Penh, 7 August 2024) The UK Export Finance (UKEF), a United Kingdom government ministerial department and the nation’s export credit agency, Tuesday expressed the willingness to finance Cambodia’s infrastructure projects and public services to attract investment from the British. The UKEF delegation was on a three-day mission from August 5-7 to explore opportunities for strengthening cooperation under the export finance framework in Cambodia. The Head of UKEF appreciated the efforts of the working groups which led to the development of all sectors across the country, especially the public infrastructure sector, a key to support the socio-economic development of Cambodia. “As part of the International Development Strategy, the UK Government is committed to supporting Cambodia’s socio-economic development by promoting investment in infrastructure and public services.”

https://www.khmertimeskh.com/501537180/ukef-to-finance-kingdoms-infra-for-export...

EXIM Board approves landmark $1.6 billion solar energy and water project in rural Angola

(Smart Water Magazine, Madrid, 29 August 2024) The Board of Directors of the Export-Import Bank of the United States (EXIM) approved a historic $1.6 billion direct loan to support the construction of 65 solar photovoltaic energy mini-grids with energy storage facilities that will power water collection, treatment, and purification systems in four southern provinces in Angola. The project will increase access to electricity and potable drinking water in several provinces in Angola that previously had little access and will promote improved health, education, and social wellbeing. The transaction, involving ING Capital, Sun Africa, and Omatapalo is estimated to support 3,100 U.S. jobs.

https://smartwatermagazine.com/news/export-import-bank-united-states-exim/exim-b...

What's New for July 2024

"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

  • Campaigners Increasingly Targeting Financial Backers with Lawsuits Against Fossil Fuel Funders
  • EDC undermines climate commitments yet again with massive loan renewal for Enbridge
  • Swiss ECA faces backlash after climate policy U-turn
  • UAE’s ALTÉRRA invests in fund backing fossil gas despite “climate solutions” pledge
  • US Congress Examines Role of EXIM Amid Intensifying Economic Competition with China
  • USEXIM President Testifies on U.S.-China Economic Competition
  • US Law Firm Claims Chinese ECA Sinosure pursues overseas importers to pay off unpaid debts
  • Five-yr extension expected for Indian export credit scheme
  • Spanish ECA supports Siemens Gamesa $1.3 bln guarantee package
  • JBIC signs credit line of up to US$3 billion for Adnoc
  • Ukraine and UK sign defence export finance and nuclear supply deals

Campaigners Increasingly Targeting Financial Backers with Lawsuits Against Fossil Fuel Funders

(DeSmog, Seattle, 26 June 2024) Campaigners are increasingly taking out lawsuits against the funders of fossil fuels and other climate-harming activities, according to a new report. In its annual review of climate litigation, published June 26, the London School of Economics and Political Science’s (LSE) Grantham Research Institute on Climate Change and the Environment identifies a modest but growing number of lawsuits challenging the flow of finance to projects that worsen climate change. In total, 33 cases that challenge the flow of funding have been recorded since academics began keeping track nine years ago. Six were filed in 2023. In one significant recent case, human rights and environmental NGO Jubilee Australia challenged Australia’s export credit agency Export Finance Australia and the $7 billion AUD Northern Australia Infrastructure Facility for giving taxpayer-subsidized finance to risky new fossil fuel projects and related ventures that would otherwise not go ahead. Jubilee Australia wants to force the public bodies involved to disclose impact assessments for these investments. French bank BNP Paribas also recently said it would stop funding new gas projects as the risk of litigation rises. Campaigners, including Oxfam France, had sued the bank for financing fossil fuels in the first-ever climate-related lawsuit against a commercial bank. However, activists noted that BNP cut out direct loans, and it still supports oil and gas through indirect loans to other involved companies and by underwriting bonds. A previous claim from 2020 against Australian banking group ANZ confirmed that climate change was relevant to responsible business practices under the OECD guidelines, but the organization did not require companies to divest from fossil fuels. The OECD guidelines are just one example of “soft law” – agreements that are influential but not legally binding – groups use to try to push corporations and their funders in a greener direction.

https://www.desmog.com/2024/06/26/lse-report-campaigners-lawsuits-banks-funders-...

EDC undermines climate commitments yet again with massive loan renewal for Enbridge

(EcoJustice, Vancouver, 24 July 2024) Export Development Canada (EDC) has renewed a $200- to $300-million loan to oil and gas giant Enbridge Inc., despite environmental organizations raising the alarm about the serious climate consequences and human rights concerns of this financing. EDC is a federal Crown corporation and Canada’s official export credit agency – it has also been a prolific funder of fossil fuels.  Just days prior to EDC signing the deal, environmental organizations submitted an analysis to EDC asserting that corporate financing to Enbridge Inc., which has significant plans to expand fossil fuel infrastructure, does not align with the Crown corporation’s climate commitments, nor with international obligations to phase out fossil fuels and reduce greenhouse gas emissions.  In the analysis submitted by Ecojustice on behalf of Above Ground (a project of MakeWay), the Center for International Environmental Law, Environmental Defence Canada, Oil Change International and Stand.earth, major concerns about EDC’s financing of Enbridge are raised. Their submission to EDC highlights the dire impacts of climate change while also citing public reports of human rights risks and violations, and active legal challenges involving Enbridge’s projects from Indigenous groups, impacted communities, and an Attorney General. The submission calls on EDC to examine the implications of continuing to fund fossil fuel companies like Enbridge.

https://ecojustice.ca/news/export-development-canada-undermines-climate-commitme...

Swiss ECA faces backlash after climate policy U-turn

(Global Trade Review, London, 17 July 2024) Climate campaigners have accused Switzerland’s export credit agency (ECA) of “watering down” its climate commitments, after it scrapped a pledge to end all support for the fossil fuel sector. Swiss Export Risk Insurance (Serv) was one of numerous public finance institutions that pledged to end direct support for the unabated fossil fuel energy sector by the end of 2022, part of a landmark declaration on climate change agreed at the Cop26 summit in Glasgow. But in an updated policy finalised in May this year, Serv has removed that commitment. Support is still unavailable for coal or oil, or for upstream projects, but midstream gas projects are no longer prohibited. Even if a project does not meet Paris Agreement goals, Serv can still offer insurance if it is deemed in the “economic, foreign, trade and development policy interests of Switzerland”, the policy states.

https://www.gtreview.com/news/sustainability/swiss-eca-faces-backlash-after-clim...

UAE’s ALTÉRRA invests in fund backing fossil gas despite “climate solutions” pledge

(Climate Change News, Broadstairs UK, 27 July 2024) As world leaders gathered in Dubai at the start of COP28 last December, the United Arab Emirates dropped a surprise headline-grabbing announcement. The host nation of the UN talks promised to put $30 billion into a new climate fund aimed at speeding up the energy transition and building climate resilience, especially in the Global South. ALTÉRRA was billed as the world’s largest private investment vehicle to “focus entirely on climate solutions”. COP28 President Sultan Al-Jaber hailed its launch as “a defining moment” for creating a new era of international climate finance. Yet four months later, one of the initial funds ALTÉRRA backed with a $300-million commitment agreed to buy a major fossil gas pipeline in North America, Climate Home has discovered. Climate Home’s findings “confirm our worst fears”. “The ALTÉRRA fund uses a masquerade of green progress while funnelling investment into fossil fuel pipelines and gas projects, which are the biggest causes of the climate crisis,”

https://www.climatechangenews.com/2024/07/24/uaes-alterra-invests-in-fund-backin...

US Congress Examines Role of EXIM Amid Intensifying Economic Competition with China

(US Congress, Washington, 24 June 2024) The US Congress House Financial Services Subcommittee Chairman on National Security, Illicit Finance, and International Financial Institutions, led by Chairman Blaine Luetkemeyer (MO-03), held a hearing entitled “The Role of the Export-Import (Ex-Im) Bank of the United States Amid Intensifying Economic Competition with China.” He noted "“That threat is the bid for global economic domination posed by Communist China. Unlike the United States, the CCP does not subscribe to the rules-based order that has governed trade and export credit financing for nearly a century. The CCP demonstrates daily that it plays by its own rules and will do anything to gain footholds in strategic sectors vital to security. China’s highly aggressive actions in export credit financing blend beyond economic advancement and are clearly an effort to enhance its global power and economic might. It is critical, the United States compete and win in this arena against China."

https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=409306

USEXIM President Testifies on U.S.-China Economic Competition

(C-Span, Washington, 27 June 2024) Reta Jo Lewis, president and chair of the U.S. Export-Import Bank, testified before the House Financial Services Subcommittee National Security, Illicit Finance, and International Financial Institutions on oversight of bank operations and U.S.-China economic competition. Several topics were addressed, including fossil fuel and green energy investments, U.S. manufacturing and trade, workplace culture concerns, and challenges posed by China’s Belt and Road Initiative. She also spoke on the bank’s China and Transformational Exports Program (CTEP), which helps U.S. exporters remain competitive with China in key export areas, such as artificial intelligence (AI), wireless communications, renewable energy, and semiconductor manufacturing.

https://www.c-span.org/video/?536642-2%2Fus-export-import-bank-president-testifi...

US Law Firm Claims Chinese ECA Sinosure pursues overseas importers to pay off unpaid debts

(Harris Sliwoski, Los Angeles, 17 July 2024) US law firm accuses Sinosure of pressuring clients to pay off Chinese factories for allegedly owed money. They claim the Chinese state-owned export credit insurance company actively pursues overseas companies for alleged unpaid debts on behalf of Chinese manufacturers saying "Sinosure subsidizes Chinese companies and then aggressively seeks reimbursement from overseas companies. It often hires debt collectors and law firms to chase foreign companies for money supposedly owed to its insured Chinese manufacturers. A foreign company pays a Chinese manufacturer an advance for a large order. The rest is owed upon delivery. The shipment arrives, but the quality is terrible and unusable. The foreign company refuses to pay the balance owed and requests a refund or new products. The Chinese company goes silent or tries to negotiate. Then Sinosure jumps in. Sinosure demands payment through threatening calls or letters. It threatens to sue the foreign company in China or its home country." They publish "China Sinosure as Existential Threat and Fighting Back Against Fake (and Real) Sinosure Claims: A Primer"

https://harris-sliwoski.com/chinalawblog/why-and-how-to-hide-your-ip-from-an-inc...

Five-yr extension expected for Indian export credit scheme

(India Times, New Delhi, 26 June 2024) India is expected to extend a key support scheme for export credit to boost its export sector, which has been hit hard by a slowdown in developed countries. The commerce and industry ministry has proposed an extension of the interest equalisation scheme beyond June 30, providing a 3% benefit for manufacturer micro, small and medium enterprises (MSME) and a 2% incentive for exporters of 410 identified tariff lines. The Centre is likely to extend a key support scheme for export credit to enhance competitiveness of India's export sector, which was hit hard by slowdown in the developed countries, said people familiar with the matter.

https://economictimes.indiatimes.com/news/economy/foreign-trade/five-yr-extensio...

Spanish ECA supports Siemens Gamesa $1.3 bln guarantee package

(Reuters, Madrid, 15 July 2024) Spanish ECA Cesce has moved to support Siemens Energy's (ENR1n.DE) wind turbine division, Siemens Gamesa, as part of a 1.2 billion euro ($1.31 billion) guarantee facility. The Spanish state's backstop will be up to 600 million euros, or 50% of the package to support wind projects, and will be deployed via Cesce. Six banks also support the guarantee facility. Siemens Energy recently announced an overhaul of its struggling wind division, which was affected by major quality issues at its newer onshore wind turbine platforms. Last year the German government agreed to support Siemens Energy with guarantees worth 7.5 billion euros as part of a deal with other stakeholders.

https://www.reuters.com/business/energy/spanish-government-supports-siemens-game...

JBIC signs credit line of up to US$3 billion for Adnoc

(The Asset, Hong Kong, 10 July 2024) Japan Bank for International Cooperation (JBIC) has signed a general agreement with Abu Dhabi National Oil Company (Adnoc) to provide a credit line of up to US$3 billion. The Japanese export credit agency will contribute US$$1.8 billion. The proceeds will fund projects related to decarbonization and energy transition to be implemented by Adnoc or its subsidiaries in the United Arab Emirates or internationally. Adnoc, an energy company wholly owned by the Emirate of Abu Dhabi, aims to achieve net zero by 2045. It promotes renewable energy, hydrogen and ammonia as fuel sources, carbon capture and storage (CCS), and other green energy initiatives. According to JBIC, Abu Dhabi has been a stable and important supplier of crude oil to Japan for more than 40 years, and as such, is a strategic partner for Japan's energy resource strategy. In addition, Abu Dhabi has high potential in the field of decarbonization and energy transition as it has abundant resources for renewable energy and subterranean structures suitable for CCS.

https://www.theasset.com/article/51880/jbic-signs-credit-line-of-up-to-us-3-bill...

Ukraine and UK sign defence export finance and nuclear supply deals

(Global Trade Review, London, 24 July 2024) The UK and Ukraine have signed an expanded defence pact and an export credit deal for the Ukrainian nuclear energy operator. A Defence Export Support Treaty, signed last week during a visit to London by Ukrainian President Volodymyr Zelenskyy, will allow Kyiv to use part of UK Export Finance’s (UKEF) £3.5bn capacity for Ukraine coverage to purchase military goods and services. The treaty expands on a similar agreement signed in 2021 covering exports to Ukraine’s navy. The text of the document has not been published and it still requires ratification by the UK parliament.

https://www.gtreview.com/news/europe/ukraine-and-uk-sign-defence-export-finance-...

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