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 December 2021

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.

  • ECA Watch letter to European Commission re ECAs and corporate social governance
  • Friends of the Earth sues Britain over Mozambique LNG project
  • ESA adopts revised state ECA/corporate aid guidelines
  • Russia's Arctic LNG 2 agrees loans worth 9.5 bln euros
  • Russia's Amur Gas Chemical Complex secures $9.1 bln in ECA & bank loans
  • Facing debt repayment issues China shifts Africa financing focus from infrastructure to trade
  • Charting a new course: The future of UK exports and export finance
  • Biden orders U.S. to stop financing new carbon-intense projects abroad
  • EXIM supports Lithuania in political dispute with China
  • EKF issues ‘biggest ever’ loan for Turkey railway project
  • General Electric : Another milestone for Dogger Bank Wind Farm as it reaches financial close for third phase

ECA Watch letter to European Commission re ECAs and corporate social governance

(ECA Watch, Amsterdam, 25 November 2021) The European Commission is working on a proposal for a directive on corporate social governance, which will include a regulation of the human rights and environmental due diligence (HREDD) obligations of corporations. We urge the proposed new regulation to become legally binding on the due diligence obligations of ECAs of member states, to make ECAs liable for its implementation and to implement export credit insurance as an enforcement mechanism for the legislation., This directive should oblige ECAs to monitor and follow HREDD policies and would ban companies, that have violated their duties under the directive, from ECA support.

https://www.eca-watch.org/sites/default/files/2021-11-25_Letter%20by%20ECA%20Wat...


Friends of the Earth sues Britain over Mozambique LNG project

(Reuters, London, 7 December 2021) – A legal challenge by Friends of the Earth against the British government will be heard on Tuesday in the High Court seeking to block a $1.15 billion financing for a Liquefied Natural Gas (LNG) project in Mozambique, the environmental activist group said on Tuesday. Britain’s export credit agency UK Export Finance (UKEF) has committed to provide up to $1.15 billion of direct loans and guarantees to banks to support the design, build and operation of the $20 billion LNG project led by French energy company TotalEnergies. Friends of the Earth said in a statement the project was incorrectly judged to be compatible with the Paris climate agreement, without proper assessment of the development’s climate impacts. A recent report by Friends of the Earth estimated that the project could emit up to 4.5 billion tonnes of greenhouse gases over its lifetime. That is more than the combined annual emissions of all 27 EU countries, according to the authors of the report. The money – a combination of loans and guarantees – comes from the government’s export credit agency, UK Export Finance (UKEF). At an advanced point in the negotiations, UKEF “felt that not agreeing to the loan would be embarrassing to the United Kingdom given its role in the African Development Bank”, FOEUK lawyer Simor told the court. The African Development Bank is co-financing the project, which is led by oil company Total. Mozambique is not only one of the poorest countries in the world, but also one of the most affected by the climate crisis and most vulnerable to its impacts. It is also in the middle of a violent Islamic State-led insurgency.

https://kfgo.com/2021/12/07/friends-of-the-earth-sues-britain-over-mozambique-ln...


ESA adopts revised state ECA/corporate aid guidelines

(ECA Watch, Ottawa, 31 December 2021) The EFTA Surveillance Authority (ESA) which monitors non-EU European Free Trade Association States (Iceland, Liechtenstein and Norway) has adopted two sets of revised guidelines in the field of state aid: one on the promotion of risk finance investments and another on short-term export credit insurance. Both guidelines correspond to guidelines adopted by the European Commission and aim to ensure [the fiction of] a level playing field for businesses across the EEA. State aid for export credits monitored by the EU [and the OECD] enable foreign buyers of goods and services to defer payment. This entails a credit risk for sellers, for which they can insure themselves. This is known as export credit insurance. The guidelines will [supposedly] help ensure that state aid does not distort competition in the EEA among private and public - or publicly supported - export credit insurers, and create a level playing field among exporters.

https://www.marketscreener.com/news/latest/ESA-adopts-revised-state-aid-guidelin...


Russia's Arctic LNG 2 agrees loans worth 9.5 bln euros

(Reuters, Moscow, 30 November 2021) Russian gas producer Novatek (NVTK.MM) said on Tuesday its Arctic LNG 2 plant has signed loan agreements with foreign and Russian banks worth 9.5 billion euros ($10.8 billion), securing necessary external financing for the project. Earlier this year, Novatek shareholders approved external financing of $11 billion for the $21 billion Arctic project, which is expected to start production of liquefied natural gas in 2023. Novatek has had difficulty in securing funds from Europe, wary of political standoff with Russia as well as calls against tapping hydrocarbons in the Arctic amid efforts to tackle climate change. Chinese financial institutions, including the China Development Bank and the Export-Import Bank of China, signed credit facility agreements totalling 2.5 billion eurosfor up to 15 years. Financial institutions from the OECD member countries signed credit facility agreements totaling up to 2.5 billion euro. This includes the Japan Bank for International Cooperation (JBIC) and other lenders insured by export credit agencies. Sources told Reuters earlier this month that Italy's SACE may insure a loan of around 500 million euros for Arctic LNG 2.

https://www.reuters.com/markets/asia/russias-arctic-lng-2-agrees-loans-worth-95-...


Russia's Amur Gas Chemical Complex secures $9.1 bln in ECA & bank loans

(Reuters, Moscow, 8 December 2021)  Russia's Amur Gas Chemical Complex (Amur GCC) has secured $9.1 billion in loans maturing in 2035, Sibur, which co-owns the plant with China's Sinopec, said in a statement on Wednesday. International banks will provide $2.6 billion for the Amur GCC with coverage from export credit agencies SACE of Italy and Germany's Euler Hermes, Sibur said, while Chinese and Russian banks will issue the remaining $6.5 billion.

https://www.reuters.com/business/energy/russias-amur-gas-chemical-complex-secure...


Facing debt repayment issues China shifts Africa financing focus from infrastructure to trade

(Global Trade Review, London, 15 December 2021) China’s commitments to financing in Africa are shifting away from giant infrastructure developments and towards developing stronger trade flows and commercial investments, analysts say. At the Forum on China-Africa Cooperation (Focac) in late November, the country unveiled an action plan that included around US$40bn of commitments in the form of trade finance, commercial investments and a share of China’s Special Drawing Rights (SDR). Although a hefty headline figure, it is significantly less than the US$60bn promised at the two most recent forums in 2015 and 2018. It also includes little in the way of concessional loans, which has been China’s primary tool for financing a swathe of infrastructure across the continent, including railways, airports, roads and energy projects. GTR reported in September that European export credit agencies and commercial lenders have been approached by Chinese contractors working on projects in Africa who have been unable to secure financing from Chinese sources. The Atlantic Monthly calls this "China's real 'debt trap' threat, claiming it "is part of a deepening debt crisis affecting countries that have borrowed hundreds of billions of dollars from China for infrastructure development... It’s not just low-income countries that are hard-pressed to repay China. Middle-income nations also are seeking to renegotiate their Chinese debts as the pandemic-induced global economic slowdown nears the two-year mark. But Chinese lenders are digging in their heels as governments ask for relief, especially with countries that don’t receive media attention. And those countries are feeling the pain. For example, Suriname’s inability to access IMF funds means less money for social programs at a time when the pandemic has increased demand for health care and other programs focused on the poor.

https://www.gtreview.com/news/africa/china-shifts-africa-financing-focus-from-in...


Charting a new course: The future of UK exports and export finance

(Global Trade Review, London, 13 December 2021) [Barclays sponsored GTR article] Having been profoundly shaken by the combined impact of the pandemic and Brexit, UK exporters continue to face significant trade challenges. As companies rethink and recalibrate their export strategies and supply chains, there is an increased focus on ESG performance and an opportunity to build back not only better, but cleaner and greener. In mid-November, GTR and Barclays gathered top trade experts for a virtual roundtable discussion to address the crucial issues impacting the export and export finance market, the route to export recovery and growth in a more sustainable environment, and the role of the financial sector in keeping trade flowing.

https://www.gtreview.com/news/europe/charting-a-new-course-the-future-of-uk-expo...


Biden orders U.S. to stop financing new carbon-intense projects abroad

(Reuters, Washington, 10 December 2021) The Biden administration has ordered U.S. government agencies to immediately stop financing new carbon-intensive fossil fuel projects overseas and prioritize global collaborations to deploy clean energy technology, according to U.S. diplomatic cables seen by Reuters. However, "This policy is full of exemptions and loopholes that lack clarity, and could render these restrictions on fossil fuel financing completely meaningless," said Kate DeAngelis, a climate finance expert at Friends of the Earth. FOEUS notees that while the policy states that “infrastructure directly related to the production, transportation, or use of fossil fuels, including oil and natural gas, are considered ‘carbon-intensive international energy engagements,’” it then defines “carbon-intensive” using metrics (i.e., kWh) that appear to only apply to electrical generation (i.e., power plants), not production, transportation, or mid-stream like LNG.

https://www.reuters.com/business/energy/biden-orders-us-stop-financing-carbon-in...


EXIM supports Lithuania in political dispute with China

(Epoch Times, Washington, 22 December 2021) Lithuania's regional and economic stability is facing challenges from the Chinese regime for allowing self-ruled Taiwan, which Beijing claims as a runaway province, to open a de facto embassy in its capital Vilnius. In response, China recalled its ambassador in August before downgrading the diplomatic relations and expelled Lithuania’s top representative to China in November. Beijing has imposed a trade embargo over Lithuanian exports and imports, and has threatened multinationals to sever ties with Lithuania or face being shut out of the Chinese market. Chinese customs authorities have refused to import or clear goods from the Baltic nation. The US is supporting Lithuania in this dispute. [It is interesting to note that it was the right-wing Falun Gong owned Epoch Times which flagged the EXIM approval of a $600 million export credit agreement with Lithuania on Nov. 24, in a bid to boost economic cooperation between the two nations and withstand increased pressure from the Chinese regime.]

https://www.theepochtimes.com/us-expresses-ironclad-solidarity-with-lithuania-fa...


EKF issues ‘biggest ever’ loan for Turkey railway project

(Global Trade Review, London, 8 December 2021) Danish export credit agency EKF has signed its largest ever export loan for the construction of a high-speed railway project in Turkey. The agency is lending €576mn to the Turkish finance ministry for the project. The loan is classified as green because the electric railway is categorised as sustainable under the EU’s sustainable financing taxonomy. The total value of the financing is €1.1bn, which includes contributions from Swedish public finance and export credit bodies EKN and SEK. Standard Chartered and several other commercial lenders are also involved in the deal, but their exact roles have not yet been disclosed.

https://www.gtreview.com/news/europe/ekf-issues-biggest-ever-loan-for-turkey-rai...


General Electric : Another milestone for Dogger Bank Wind Farm as it reaches financial close for third phase

(Market Screener, Annecy, 2 December 2021) General Electric announced that the Dogger Bank Wind Farm, between 130km and 190km off the north-east coast of England in the North Sea, reached financial close on debt financing for phase C, the third 1.2 GW phase. Upon completion, Dogger Bank is expected to be the world's largest offshore wind farm with the total number of Haliade-X units to be installed at Dogger Bank reaching 277.  GE Energy Financial Services ("GE EFS") partnered with the co-sponsors to support insurance cover from Bpifrance, which insured a portion of the ECA debt financing. Separate debt facilities structured by the co-sponsors are supported by EKN, the Swedish export credit agency and Export Finance Norway (Eksfin), the Norwegian export credit agency. Dogger Bank C will connect to the grid at Lackenby England.

https://www.marketscreener.com/quote/stock/GENERAL-ELECTRIC-COMPANY-4823/news/Ge...


What's New November 2021

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.

  • U.S., U.K. lead pledge to end overseas oil and gas financing, but with big caveats
  • G20 ECAs and public finance institutions are still bankrolling fossil fuels
  • European export finance alliance pushes for green incentives [eventually!]
  • If global finance can step up to the net-zero challenge, governments surely can
  • Will the capital to invest in net-zero plans be available?
  • The push to net zero - Can project finance fuel investment in the Hydrogen market?
  • International Chamber of Commerce proposes new framework for sustainable trade finance
  • UAE’s ADNOC secures $3bn loan from JBIC and 4 other banks
  • Shipowners see growing benefits of Chinese leasing and trade finance
  • Russian ECA Helps Bangladesh enter nuclear power age
  • U.K. to Set 1 Trillion Pound Post-Brexit Export Target
  • US EXIM focus on Africa
  • British Airways secures another £1bn UKEF-backed facility
  • Norwegian ECA supports North Pole cruising in style
  • Lithuania to get U.S. EXIM trade support as it faces China fury over Taiwan
  • New OECD down payment requirements set to boost ECA support in emerging markets
  • Russians Discuss Increased Engagement With Africa

U.S., U.K. lead pledge to end overseas oil and gas financing, but with big caveats

(Politico, Glasgow, 4 November 2021) The United States, the U.K. and some 20 other countries and financial institutions pledged on Thursday to stop public financing for most overseas oil and gas projects by next year, though the agreement included wide latitude for participants to set their own exemptions and many of the world's leading backers of those projects declined to sign on. The pledge is limited to ending financing of "unabated" oil and gas projects, and would allow those that include carbon capture and sequestration technology. A senior Biden administration official told POLITICO the measure includes exemptions, and that the Biden administration had not settled on how it would instruct its finance aid organizations like the U.S. Export-Import Bank. How tight any carve-outs are for oil and gas is potentially significant for Ex-Im, which approved $5 billion in fossil fuel finance the last two years, environmental group Friends of the Earth said in a statement. "While this is welcome progress, countries, especially the U.S., must hold firm to these commitments, shutting off the spigot to fossil fuel companies like [Mexico's] Pemex and Exxon," said Kate DeAngelis, manager of Friends of the Earth's international finance program. She also called out "laggards like Japan and Korea" to join the new pledge.

https://www.politico.com/news/2021/11/04/us-uk-pledge-end-overseas-oil-gas-finan...


G20 ECAs and public finance institutions are still bankrolling fossil fuels

(Oil Change Int'l/FOEUSA, Washington, October 2021) This 36 page reprort documents how G20 countries and the multilateral development banks (MDBs) they govern in 2018-2020 provided at least US$63 billion per year in international public finance for oil, gas, and coal projects. This fossil fuel finance was 2.5 times more than their support for renewable energy, which averaged only US$26 billion per year. This continued support for fossil fuels from trade and development finance institutions counters G20 countries’ commitments under the Paris Agreement to align financial flows with a safe climate future as well as their 2009 commitment to phase out fossil fuel subsidies. It also undermines the effectiveness of climate finance, which is still not delivered at either the scale promised (US$100 billion per year from 2020) or needed. ECAs continue to be the largest supporter of international fossil fuel projects, providing billions annually in 2018-2020: ECAs provided an average of US$40.1 billion annually to fossil fuels — 82% of ECA support. This 36 page report shows that the science is clear — governments must rapidly wind down fossil fuel production and use to avoid the worst climate impacts, noting that the recent Intergovernmental Panel on Climate Change (IPCC) report is a “code red for humanity.”

https://1bps6437gg8c169i0y1drtgz-wpengine.netdna-ssl.com/wp-content/uploads/2021...


European export finance alliance pushes for green incentives [eventually!]

(Global Trade Review, London, 24 November 2021) Seven European countries have pledged to promote reforms and encourage green incentives in the export credit sector, but dashed campaigners’ hopes that they would axe public finance for fossil fuels more quickly than the end of 2022 deadline set at the Cop26 conference. The Export Finance for Future (E3F) coalition, initially comprising Denmark, France, Germany, the Netherlands, Spain, Sweden and the UK, held its second virtual meeting today, hosted by the Dutch government. Belgium, Finland and Italy also joined the alliance today, Dutch state secretary for finance Hans Vijlbrief told the summit following the nations’ closed-door talks. A statement expected after the meeting had not been published as of press time, but a draft seen by GTR said the E3F countries would collaborate on strategies to meeting a pledge signed by each at the Cop26 climate change summit to end public finance support for fossil fuels by the end of 2022. The E3F members provided €20bn in export finance for fossil fuel projects overseas between 2018 and 2020, according to data cited by Oil Change International, a campaign group, and ODI, a think-tank. This compares to €17bn for clean energy projects over the same period. Vijlbrief indicated that attendees at the closed-door meeting endorsed support for natural gas beyond the end of the [Cop26] 2022 deadline. “We all know gas will play a role for a couple of years in our energy supply, that’s no secret,” he said. Peder Lundquist, chief executive of EKF, Denmark’s ECA, told the summit that “logically you need some kind of transition”, pointing to natural gas as a “stable” energy source for power grids in less-developed countries that would struggle to handle a rapid shift to renewables. Deputy assistant for export finance at France’s Treasury directorate, Paul Teboul, said his government does not plan to end support for upstream gas projects until 2035.

https://www.gtreview.com/news/sustainability/european-export-finance-alliance-pu...


If global finance can step up to the net-zero challenge, governments surely can

(Guardian, London, 13 November 2021) A new alliance of financial institutions is committed to funding the changes necessary to avert climate catastrophe. Alliance Chair Mark Carney notes that six years ago, in Paris, countries reached an historic agreement to limit the global temperature rise to less than 2C, targeting 1.5C. "In finance, we launched the task force on climate-related financial disclosures so that companies would disclose their climate-related risks, allowing finance to measure what matters." Despite these breakthroughs, in the years that followed, action didn’t match ambition. Few countries pursued the necessary policies, and business investment in decarbonisation was limited. Too many in finance thought that the climate crisis was someone else’s problem. People will no longer tolerate worthy statements followed by futile gestures. In April, we launched the Glasgow Financial Alliance for Net Zero (GFANZ), which now covers the entire waterfront of finance: banks, insurers, pension funds, export credit agencies and asset managers. It comprises more than 450 leading financial institutions from 45 countries. Its members have committed to managing their assets, which total more than $130tn, in line with achieving 1.5C. The total cost of the global transition is estimated to be about $4tn every year for the next three decades, so there are now more than enough readily available resources to do the job. While this is a watershed achievement, some are understandably sceptical. After all, if governments didn’t follow through after Paris, why would finance after Glasgow? [For example, in another news item, the Bureau of Investigative Journalism has reported that HSBC, on behalf of a group of 12 banks on Prince Charles’s Financial Services Taskforce, coordinated efforts to try and water down GFANZ action on climate change. The Bureau details that HSBC lobbied Mark Carney’s Net Zero Banking Alliance to: remove the list of sectors that must be included in the first round of target-setting; set targets only for sectors where there are “credible transition pathways” to a net-zero future and delay until 2025 or 2030 the deadline for banks to set targets for some carbon-intensive sectors, instead of 18 months from signing the NZBA commitment.]

https://www.theguardian.com/commentisfree/2021/nov/13/global-finance-net-zero-ch...


Will the capital to invest in net-zero plans be available?

(Morningstar, Chicago, 9 November 2021) Capital critical to funding the greening of utilities and other industries makes the financial industry a key player in curbing global warming. At a global climate summit last week, big banks, institutional investors, insurance companies, and regulators announced that the amount of capital controlled by institutions [which claim to be] committed to net-zero initiatives now tops $130 trillion, up from $5 trillion in 2020, according to the Glasgow Financial Alliance for Net Zero. That is about equal to the $100 trillion to $150 trillion amount required to transform the economy to a net-zero by 2050, the group claims. Banks, insurers, pension funds, asset managers, export-credit agencies, stock exchanges, credit rating agencies, index providers, and audit firms have committed to achieving net-zero emissions by 2050 at the latest and plan to report progress and financed emissions annually. For now, the impact on the finance industry itself isn’t clear. Lenders will still be looking for a good return and are already funding projects “that provide an appropriate return". [i.e. they have to make money if they're going to save the planet] How different portfolio companies will reduce emissions can be fraught, as they are struggling with their own net-zero plans. Dan Dorman of Calvert notes that while many of the largest banks had already committed to decarbonizing their portfolios, his conversations with executives suggest “they really don’t have details [yet] about how to land this plane.” There is also some debate about whether the group is double-counting the money that it claims is available.

https://www.morningstar.com/articles/1065669/what-banks-climate-pledges-mean-for...


The push to net zero - Can project finance fuel investment in the Hydrogen market?

(Lexology, London, 18 November 2021) Discussion of hydrogen fuel has become increasingly prevalent over the past few years. The increased push to reach net zero targets, as highlighted in the Government's newly published 'Net Zero Strategy: Build Back Greener', has brought hydrogen back into popular discussion. New technological innovations look to be making hydrogen energy cleaner, cheaper and more accessible for industry. This may be opening new doors for the element. How will this unprecedented scale of energy innovation investment be funded? Historically, groundbreaking energy technologies have relied upon significant government subsidies, supported by bankable project financing. Can hydrogen replicate the project finance model? If not, where will the money come from? The current funding for investments into hydrogen technologies is found largely in government or university research and development grants and corporate venture equity. There is very little hydrogen being funded through debt finance. Hydrogen, however, is an energy source that still requires significant investment; both in production (for example, developing effective and cost-viable carbon capture and storage facilities to accompany blue hydrogen production) and in delivery and use (for example, in getting gas infrastructure and networks, consumer products and energy storage ready to facilitate a hydrogen market).

https://www.lexology.com/library/detail.aspx?g=3223ce60-4ea7-4434-9937-664adb0e9...


International Chamber of Commerce proposes new framework for sustainable trade finance

(Reuters, London, 10 November 2021) The standard setter for global trade finance flows has proposed a new set of rules to define sustainability in the trade finance arena, worth some $5 trillion a year, an executive told Reuters. While governments and business sectors move quickly to set guidelines for some types of sustainable finance, there are no standards for trade finance. Those rules would apply to a third of global trade. Agreeing on a common rulebook could help direct more trade flows toward efforts that reduce climate-warming emissions and that also meet the United Nations' development goals, said Andrew Wilson, policy director at the International Chamber of Commerce (ICC).

https://www.reuters.com/business/cop/icc-proposes-first-global-framework-financi...


UAE’s ADNOC secures $3bn loan from JBIC and 4 other banks

(Arab News, Jeddah, 18 November 2021) The Abu Dhabi National Oil Company (ADNOC) signed a $3 billion loan agreement with Japan's export credit agency and four other lenders, Reuters reported citing JBIC. The Japan Bank for International Cooperation (JBIC) is providing $2.1 billion and Sumitomo Mitsui Banking Corporation (SMBC), the Tokyo branch of HSBC, Mizuho and MUFG are providing the rest, JBIC said in the statement. "This facility is intended to provide necessary support to ADNOC in ensuring stable imports of crude oil by Japanese companies," JBIC said.

https://www.arabnews.com/node/1970756/business-economy


Shipowners see growing benefits of Chinese leasing and trade finance

(Lloyd's List, London, 23 November 2021) The shipping industry is going to rely more on Chinese financing as those vessels that fall short of environmental standards become less attractive for traditional lenders, executives say. Shipowners say China is important for finance when it comes to renewing and expanding fleets, and would play an instrumental role for those vessels that will soon become unfinanceable by traditional banks.

https://lloydslist.maritimeintelligence.informa.com/LL1138949/Shipowners-see-gro...


Russian ECA Helps Bangladesh enter nuclear power age

(Eurasia Review, Albany, 13 November 2021) Bangladesh initiated its nuclear program in 2013 by signing a treaty with Russia that opened up a new avenue in their bilateral cooperation. At that time, the two countries signed a state export credit agreement to implement a nuclear project in Bangladesh. The work on the Rooppur plant started with the direct financial and technical cooperation of Russia. There are garment factories in Bangladesh which are producing in huge quantities. So, Bangladesh needs electricity. In 2009 the power generation was 3200 MW; now it has exceeded 20,000 MW. Two 1200-MW capacity reactors are being set up at Rooppur. Once the first nuclear power plant in Bangladesh begins production, it will kick-start another developmental revolution in the country.

https://www.eurasiareview.com/13112021-with-russian-help-bangladesh-set-to-enter...


U.K. to Set 1 Trillion Pound Post-Brexit Export Target

(Bloomberg, London, 14 November 2021) The U.K. will announce a new export target this week of 1 trillion pounds ($1.3 trillion) per year by 2030 as part of Prime Minister Boris Johnson’s move to overhaul its export strategy to show the benefits of leaving the European Union. A new “made in U.K., sold to the world” campaign will also be launched, as well as initiatives to boost overseas trade by providing export-linked loans and access to expertise and advice, the newspaper said. U.K. Export Finance, the government’s export credit agency, will be allowed to back larger loans for foreign or domestic companies that want to start shipping from the U.K., the Financial Times said, in a bid to attract foreign investment to the country. Previous Conservative governments in the U.K. failed to achieve the same export target by 2020, and the country only increased overseas sales to 689 billion pounds by 2019 before the pandemic hit.

https://www.bloomberg.com/news/articles/2021-11-14/u-k-to-set-1-trillion-pound-p...


US EXIM focus on Africa

(JD Supra, Sausalito, 15 November 2021) Africa is a priority for Biden administration agencies the International Development Finance Corporation and EXIM. As of the end of 2020, DFC had invested approximately US$8 billion (approximately 25 percent of its total portfolio) across more than 300 projects on the continent. During 2009 – 2019, EXIM supported US$12.4 billion of transactions to sub-Saharan Africa,11 and the region is home to EXIM's largest commitment to date. Moreover, EXIM is a long-time player in Africa, with experience dating back to the 1940s. The agency is currently open for business in 44 of the 49 countries across sub-Saharan Africa. In March 2020, it approved a US$91.5 million transaction for electrification in Senegal.12 Two months later, the agency approved its largest transaction to date: a US$4.7 billion credit (direct loan) supporting exports of US goods and services with more than 60 US suppliers to assist the development and construction of an integrated liquefied natural gas project on the Afungi Peninsula in northern Mozambique.13 EXIM made its commitment alongside those from almost 20 other ECAs and DFIs, which offered an aggregate of US$16 billion in loans.

https://www.jdsupra.com/legalnews/us-government-agencies-focus-on-africa-1823459


British Airways secures another £1bn UKEF-backed facility

(CH-Aviation, Stansstad, 2 November 2021) British Airways has reached an agreement with UK Export Finance (UKEF) and a syndicate of banks for a five-year Export Development Guarantee committed Credit Facility (UKEF Facility) of GBP1.0 billion pounds (USD1.37 billion). According to parent firm IAG International Airlines Group, this is in addition to a GBP2.0 billion (USD2.74 billion) UKEF guaranteed facility that was announced in December 2020 and drawn in March 2021. IAG, which aside from British Airways also owns Iberia, Vueling Airlines, Aer Lingus, and LEVEL, said that as of the end of September, its total cash pile stood at a "strong" EUR10.6 billion euro (USD12.26 billion).

https://www.ch-aviation.com/portal/news/109226-british-airways-secures-another-1...


Norwegian ECA supports North Pole cruising in style

(AME Info, Dubai, 7 November 2021) A Swedish aviation company, OceanSky Cruises, announced that it will start cruises to the North Pole aboard luxury airships starting from 2024. The aviation industry made up 2.5% of the total CO2 emissions in 2018 alone, or double the amounts since the mid-1980s. Now, a Swedish aviation company, OceanSky Cruises, announced it will start cruises to the North Pole aboard luxury airships starting from 2024. Norwegian export credit agency Eksfin is playing a major role in accelerating the ‘green shift’ at sea, providing loan guarantees approaching €1 billion ($1.16 bn) for the construction of 35 eco-friendly vessels over the last four years, including ‘Le Commandant Charcot’.

https://www.ameinfo.com/tech-and-mobility/cruise-the-north-pole-in-style-by-air-...


Lithuania to get U.S. EXIM trade support as it faces China fury over Taiwan

(Reuters, Vilnius, 19 November 2021) Lithuania will sign a $600 million export credit agreement with the U.S. Export-Import Bank next week, Economy Minister Ausrine Armonaite told Reuters, days after China warned it would "take all necessary measures" after Lithuania allowed Taiwan to open a de facto embassy. China demanded in August that the Baltic state withdraw its ambassador to Beijing and said it would recall China's envoy in Vilnius after Taiwan announced its office would be called the Taiwanese Representative Office in Lithuania.

https://www.reuters.com/business/lithuania-get-us-trade-support-it-faces-china-f...


New OECD down payment requirements set to boost ECA support in emerging markets

(Global Trade Review, London, 10 November 2021) The OECD has relaxed down payment rules for transactions involving export credit agencies (ECAs) in emerging markets, in the wake of what it calls a “market failure” in the private sector. Under the new rules, the OECD Arrangement on Officially Supported Export Credits has slashed the down payment requirement from 15% to 5% for sovereign borrowers in developing markets, so long as the transaction is guaranteed by a ministry of finance or central bank. The policy, which comes into immediate effect, thereby also increases the maximum amount participating ECAs can officially support from 85% to 95% of the total export contract value.

https://www.gtreview.com/news/global/new-oecd-down-payment-requirements-set-to-b...


Russians Discuss Increased Engagement With Africa

(Eurasia Review, Albany, 10 November 2021) Russia’s weak economic presence in Africa has become a thing of concern for some experts in the country and they wonder why the nation is not aggressive with this like its ally, China. Smaller countries such as Turkey is visibly broadening its economic influence and so are a number of Gulf States. In July 2021, participants at the Association of Economic Cooperation with African States (AECAS), established under the aegis of the Secretariat of the Russia-Africa Partnership Forum (RAPF), agreed that lack of financial support was the major reason for this. The forum, which had in attendance some leading Russian companies and banks, discussed an effective system of financing projects and supporting investment in Africa. 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.

https://www.eurasiareview.com/10112021-russians-discuss-increased-engagement-wit...


What's New October 2021

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.

  • New OECD coal financing restrictions represent weak progress
  • ECAs provide billions to fossil fuel projects yearly - Join us at COP26
  • European Commission opens consultation on extending temporary State export credit aid
  • SACE Could Support Novatek's Giant Arctic LNG 2 Project
  • NGOs release the 2021 Global Coal Exit List: 1000 companies driving the world towards climate chaos
  • Ukraine in talks with Britain on supply of missiles
  • Export credit agencies have stepped up during the pandemic
  • Canada won’t stop Crown corporations from investing in fossil fuels any time soon
  • Export Finance Australia offers A$2bn (US$1.5 B) in critical mineral loans
  • UKEF £1.5bn earmarked for Nigeria ‘largely untouched’
  • ECAs of UAE and France sign strategic reinsurance agreement
  • Will a Taliban victory advance TAPI pipeline with ECA support?
  • JBIC and Private Banks Must Reconsider Decision to Finance LNG Canada Project

New OECD coal financing restrictions represent weak progress

(Oil Change International, Washington, 22 October 2021) Today the OECD Export Credit Group announced new restrictions on its support for overseas coal projects. These restrictions build on the Coal-Fired Electricity Generation Sector Understanding that was negotiated in 2015 and went into effect 1 January 2017. That agreement prevented OECD-member export credit agencies (ECAs) from supporting coal-fired power plants that were less efficient unless they were in developing countries. Unfortunately, there were loopholes that allowed for continued support even for coal plants that did not meet these restrictions. Today’s restrictions would end ECA support for coal plants that do not have carbon capture, utilisation and storage (CCUS) equipment in place. Still some export of equipment for retrofitting plants with CCUS or reducing emissions will be allowed if lifetime and capacity of coal plants is not extended. The restrictions do not address export finance for coal mines and related infrastructure, nor oil and gas financing even if the latest IEA report shows that investments in new fossil fuel production need to end this year to limit warming to 1.5°C.

http://priceofoil.org/2021/10/22/new-oecd-coal-financing-restrictions-represent-...


ECAs provide billions to fossil fuel projects yearly - Join us at COP26

(ECA Watch, 27 October 2021) We can’t solve the climate crisis if export credit agencies (ECAs) continue to bankroll fossil fuels. Tell the governments behind these agencies to immediately end all export credit and other public financial support for oil, gas and coal.
Join our side event at COP26 November 4, 2021 in Glasglow
At COP26 on November 4, 2021, 16.45-18.00 Glasgow time representatives from NGOs and Zurich-based universities will host a digital side event on aligning export finance with the Paris Agreement. Contrary to Article 2.1c of the Paris Agreement, many countries heavily support fossil fuel investments abroad, contributing to carbon lock-in. By highlighting the impacts caused by export finance in the Global South, this side event will provide concrete recommendations for decarbonizing export finance. The speakers on the panel are Axel Michaelowa (University of Zurich); Kate DeAngelis (Friends of the Earth US); Bjarne Steffen (ETH Zurich); Laila Darouich (Perspectives Climate Research); Ayumi Fukakusa (Friends of the Earth Japan); Richard Matey (Alliance for Empowering Rural Communities, Ghana) ; Julio Bichehe (Farmers Union Cabo Delgado Mozambique); and Mariane Søndergaard-Jensen (Danish ECA, EKF, Denmark).
To attend the side event digitally, please register using the form. We’ll keep you updated on when and where the event will take place.
Important: you will need to be registered at COP26 to be able to join the event.

https://www.fossilfreeecas.org/


European Commission opens consultation on extending temporary State export credit aid

(Lexology, London, 4 October 2021) The European Commission launched a consultation process on 30 September 2021, sending a proposal to Member States on a sixth draft amendment to the Temporary Framework on State aid measures to support member economies in the current COVID-19 outbreak. The Temporary Framework sets out various categories of aid [subsidies?] that can be implemented by Member States, one of which is more flexible rules on short-term export credit (which are not covered by the OECD Arrangement), permitting state aid via export credit insurance to riskier countries, allowing generous financial terms beyond fair market competition. The Commission proposes to extend until 30 June 2022 the temporary removal of all countries from the list of “marketable risk countries” under Annex 1 of the Communication on short-term export credit insurance. Marketable risk countries are those which may have risks due to exchange rate volatility, foreign exchange control regulations, lack of foreign exchange for repayment, etc.

https://www.lexology.com/library/detail.aspx?g=336f1b43-f7e8-4b88-96f5-03ca41990...


SACE Could Support Novatek's Giant Arctic LNG 2 Project

(Offshore Enginer, New York, 22 October 2021)Italy's biggest banking group Intesa Sanpaolo could help fund Novatek's Arctic LNG 2 project even as some European governments show lukewarm support for the giant Russian gas project. Antonio Fallico, chairman of group unit Banca Intesa Russia, told Reuters the bank had been invited to look at the financing deal by SACE, the state-owned Italian export credit agency. Novatek said in September they had credit lines open for a third of the total financing from Russian banks, adding Chinese and Japanese banks could provide the rest. The pressure on institutional investors from climate lobby groups to stop funding fossil fuel companies has intensified markedly in recent years. The $21 billion project, which received final investment approval in 2019, is expected to reach full capacity of almost 20 million tonnes of LNG per year in 2026.

https://www.oedigital.com/news/491523-italian-bank-could-fund-novatek-s-giant-ar...


NGOs release the 2021 Global Coal Exit List: 1000 companies driving the world towards climate chaos

(Urgewald, Berlin, 6 October 2021) Three weeks before the start of the UN Climate Summit in Glasgow, Urgewald and 40 partner NGOs have released the 2021 update of the “Global Coal Exit List” (GCEL). The GCEL provides detailed data on 1,030 companies and around 1,800 subsidiaries operating along the thermal coal value chain. It is the world’s most comprehensive public database on the coal industry.

https://urgewald.org/en/medien/ngos-release-2021-global-coal-exit-list-1000-comp...


Ukraine in talks with Britain on supply of missiles

(Goa Spotlight, London, 21 October 2021) The UK is negotiating with Ukraine on the sale of the first ever consignment of weapons, in particular missiles, the Times newspaper writes with reference to a Ukrainian source. As part of the discussed agreements, London may supply Kiev with ground-to-ground missiles and aircraft missiles. The UK Ministry of Defense, according to the newspaper, is also discussing the sale of Brimstone missiles to Kiev, developed by the MDBA consortium, for installation on the ships of the Ukrainian Navy. In addition, the parties are considering the possibility of supplying air-launched Brimstone missiles, their cost is about $ 138,000. According to some reports, according to the Times, negotiations on the supply of weapons to Ukraine may also be linked to the construction of the Nord Stream 2 pipeline. The talks are prompted by the strengthening of relations between Kiev and London after the UK left the European Union. In October last year, Ukrainian leader Volodymyr Zelenskyy signed a contract with the UK Export Credit Agency, which deals with the supply of modern military equipment and the latest high-precision weapons to Kiev, types of military products in Ukraine, as well as the construction of bases for the Ukrainian Navy.

https://thegoaspotlight.com/2021/10/21/times-ukraine-is-in-talks-with-britain-on...


Export credit agencies have stepped up during the pandemic

(Financial Times Trade Secrets, Budapest, 26 October 2021) The industry has helped backstop sectors such as airlines hit hard by Covid, saving companies and jobs. An interview with the head of the Berne Union, an association of export credit agencies, to find out how it is helping exporters arm themselves against the downsides of the pandemic through export credit and insurance. The Berne Union operates all over the world allowing countries such as the US and China or Iran and Israel to discuss trade issues freely at Berne Union conferences, with political considerations mostly taking a back seat. It was that environment of co-operation that helped ensure exporters did not go out of business permanently when coronavirus effectively shut down cross-border movement during the spring of 2020. Over the course of the pandemic, members of the Berne Union provided $2.5tn in cover, its president Michal Ron told Trade Secrets. All in all, the volume of business supported by members rose 2.4 per cent between 2019 and 2020. “We have ECAs that are government agencies directly under a ministry,” she said. “Others are joint stock companies with a government-based shareholder. Some simply use direct government funding — it depends.

https://www.ft.com/content/113e8e3e-8984-45d2-92b8-c97b3c829ab8


Canada won’t stop Crown corporations from investing in fossil fuels any time soon

(Peterborough Examiner, 18 October 2021) The federal government has no plans to immediately stop Crown corporations from financing fossil fuel companies, but it’s not ruling out pushing them to reduce those supports more quickly, says Canada’s environment minister. The issue of public financing for oil and gas companies is expected to be on the agenda at the next major world summit on climate change this month, where countries that signed the 2016 Paris Agreement — including Canada — are under pressure to increase efforts to reduce their annual greenhouse gas emissions. A major report from leading scientists this summer prompted the United Nations’ secretary general to herald the “death knell” for fossil fuels that have driven emissions for decades. In an interview Friday, federal Environment Minister Jonathan Wilkinson told the Star that Crown institutions like Export Development Canada (EDC) are already committed to “net-zero” emissions — when nature or technology can remove remaining greenhouse gas pollution from the air — by 2050. Big money is in play here. EDC, the government’s export credit agency, says it provided financing and insurance that helped facilitate $62 billion in business for Canadian oil and gas companies from 2015 to 2020. And the board that invests the Canada Pension Plan’s $500-billion pool of money says it had about $17.6 billion invested with fossil fuel producers around the world as of March 2021.

https://www.thepeterboroughexaminer.com/ts/politics/federal/2021/10/18/canada-wo...


Export Finance Australia offers A$2bn (US$1.5 B) in critical mineral loans

(Global Trade Review, London, 6 October 2021) The Australian government has created a A$2bn (US$1.5bn) loan facility to spur investment in the country’s critical minerals sector, as it attempts to position Australia at the source of supply chains for technologies such as battery storage and electric vehicles. The facility will be provided through the National Interest Account (NIA) of Export Finance Australia (EFA), the country’s export credit agency. The NIA handles transactions that the government directs EFA to support. Minerals such as lithium, cobalt, titanium and rare earth elements are categorised as critical minerals because they are relatively scarce or geographically concentrated, difficult to substitute and are used in emerging technologies including large batteries. China is currently the biggest exporter of many of the minerals, with Australia another top supplier.

https://www.gtreview.com/news/asia/australian-government-offers-a2bn-in-critical...


UKEF £1.5bn earmarked for Nigeria ‘largely untouched’

(PUNCH Nigeria, Lagos, 24 October 2021) The £1.5bn financing set aside for Nigeria by the UK Export Finance, the United Kingdom government’s export credit agency, has remained largely untouched, the UK Government Department for International Trade, Nigeria has said at the 2021 Energy Sustainability Conference organised by the Energy Institute Nigeria in Lagos. “UKEF is focussed on 30 countries in Africa with a combined market risk appetite of £58bn." According to Chimwemwe Chalemera, Country Director, UK Government Department for International Trade, Nigeria, the UK’s renewable energy capabilities are a right match with the energy needs of Africa and Nigeria in achieving net zero ambitions. Meanwhile over 50 Nigerian civil society groups have written to President Buhari calling for oil in the massive OPL 245 field to be kept in the ground. This is the field that Shell and Eni acquired after allegedly paying $1.1 billion in bribes. The companies' subsidiaries are currently being prosecuted in Nigeria and there is still an investigation in The Netherlands.

https://punchng.com/1-5bn-earmarked-for-nigeria-largely-untouched-says-uk/


ECAs of UAE and France sign strategic reinsurance agreement

(Insurance News Net, Dubai, 5 October 2021) Etihad Credit Insurance (ECI), the UAE Federal export credit company and the French Export Credit Agency Bpifrance Assurance Export have signed a reinsurance agreement to increase joint Emirati and French projects globally. The agreement will further strengthen the robust trade and economic cooperation between the UAE and France and boost exports in both countries by providing export insurance solutions for Emirati and French companies. The UAE is France’s second-largest trade partner in the region. As part of boosting investment and trade ties, ECI earlier signed agreements with its counterparts in  the UK and Italy. The agreement with France has been deemed another milestone in ECI's mission to deepen the UAE's economic ties and non-oil trade.Saudi Arabia and Sweden have also discussed enhancing economic cooperation including via their ECAs.

https://insurancenewsnet.com/oarticle/export-credit-agencies-of-uae-and-france-s...


Will a Taliban victory advance TAPI pipeline with ECA support?

(Natural Gas World, Vancouver, 19 October 2021) The Taliban’s ascent is driving renewed discussion about the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. Taliban spokesman Suhail Shaheen said on August 18 that TAPI is a “long-term priority project” that the Taliban fully supports. Since the fall of the Soviet Union, energy companies have pondered routes to send natural gas from gas-abundant yet land-locked Turkmenistan to energy-poor Pakistan and onward to India. The Berdimuhamedov government of Turkmenistan and the Asian Development Bank (ADB) have made this pipeline a priority for years, but it has long been on life support, with the project’s press releases failing to obscure its grim deficits. the project is strapped for cash. The ADB has indicated it will contribute $1 billion in loans. The Turkmen government, grappling with a massive economic crisis, has risibly pledged $1.675 billion. The remainder is envisioned to come from export credit agencies and commercial lenders, all lending individually to the four governments and relying on sovereign guarantees from each country. What is an Afghan sovereign guarantee worth?

https://www.naturalgasworld.com/will-a-taliban-victory-advance-tapi-93055


JBIC and Private Banks Must Reconsider Decision to Finance LNG Canada Project

(Friends of the Earth Japan, Tokyo, 29 October 2021) The Japan Bank for International Cooperation (JBIC), a public financial institution fully owned by the Government of Japan, announced in a press release today that it has decided to provide up to US $850 million for the LNG Canada Project. The LNG Canada project plans to liquefy shale gas extracted from Montney, British Columbia and transported through its 670 km Coastal Gaslink pipeline to Kitimat for export to Asian markets.The decision by JBIC ahead of the 26th session of the Conference of the Parties (COP 26) to the United Nations Framework Convention on Climate Change (UNFCCC) starting from the end of this week in Glasgow, England, goes against the call by the UK government to stop public financing for fossil fuels, and shows that Japan's approach to climate change is still far from that of the rest of the world. It is inevitable that Japan will once again become the target of criticism from the international community. Serious violations of indigenous peoples rights have been pointed out in an associated project of the LNG Canada project. We strongly condemn JBIC's decision to provide financing, disregarding the impact on climate change and the human rights of Indigenous Peoples, and call on involved operators and financial institutions to immediately withdraw from the project.

https://www.foejapan.org/en/aid/jbic02/lngcanada/211029.html


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