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.

Featured publications and stories

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-...


What's New for June 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

  • Deal to limit ECA oil and gas funding abroad hinges on US
  • U.S. EXIM Bank in an Age of Great Power Competition
  • Export credit and West vs Chinese strategic minerals
  • EU adopts of sanctions against Russia including billions of ECA support for Ukraine
  • World Bank: How can we unlock infrastructure finance at scale for developing countries?
  • UKEF's implementation of the Equator Principles (1 April 2023 to 31 December 2023)
  • Nigerian Civil societies urge China to rescind proposed East African crude pipeline project
  • QatarEnergy, Chevron Phillips Secure $4.4 Bln Financing for Petrochemicals Project
  • Brazil’s Petrobras tightens ties with Chinese banks and Sinosure
  • JBIC fires up US$1bn loan for Australian LNG project
  • SACE EUR 100mln Push Facility provided to Eastern & Southern African Trade & Development Bank
  • India mulls overhaul of trade finance market
  • SMEs should make more use of UKEF's little-known GEF

Deal to limit ECA oil and gas funding abroad hinges on US

(E&E News, Arlington, 17 June 2024) The fate of an international plan to end a major funding source for fossil fuel projects could be decided this week by U.S. officials. Some of the world’s richest countries will meet behind closed doors starting Monday to discuss a European Union-led proposal to end loans and guarantees from their export credit agencies to oil and gas projects. It’s part of an evolving arrangement under the Paris-headquartered Organisation for Economic Co-operation and Development — a group of 38 countries that collaborate on issues of trade and finance — and follows a 2021 deal to end such investments in coal. If the countries under the arrangement reach a new agreement, it could help squelch the flow of billions of dollars into polluting energies. If they don’t, the proposal could get punted to the next round of talks in November, when former President Donald Trump, the presumptive Republican nominee for president, could be re-elected — which would threaten any agreement to restrict fossil fuel investments. “All eyes are on the U.S.,” said Kate DeAngelis, deputy director of international finance at the climate advocacy group Friends of the Earth. “Without the U.S coming to the table, we’re not going to see Japan and Korea get in line. And so I think if nothing happens, then that’s telling in and of itself that it’s a failure of U.S. leadership.”

https://www.eenews.net/articles/deal-to-limit-oil-and-gas-funding-abroad-hinges-...


U.S. EXIM Bank in an Age of Great Power Competition

(Center for Strategic and International Studies, Washington, 18 June 2024) The U.S. Export-Import Bank (EXIM), the United States’ official export credit agency (ECA), is an independent, executive branch institution that supports U.S. businesses by financing the exports of goods and services. EXIM creates jobs at home and has been an important national security instrument. From 2015 to 2019 the bank was dormant due to the absence of a board quorum and the lack of a reauthorization of its charter from the U.S. Congress. During the last 15 years, EXIM, once the global ECA gold standard, has been underutilized as it has struggled politically. Over this same period the global export credit landscape has evolved significantly, with governments around the globe using their ECAs more as instruments of industrial policy and to strategically boost their manufacturing competitiveness and strategic influence in critical emerging and frontier markets. Most notable in its ascendance as a global export credit player, the People’s Republic of China (PRC) has become a much bigger player in the space. At the same time, U.S. allies (and sometimes economic competitors) have also elevated their ECAs’ competitiveness and influence by offering more flexible terms and becoming more client-oriented compared to EXIM. As a result, EXIM not only has lost its global leadership position, but now is at a significant competitive disadvantage compared to its competitors, including the PRC, in the ECA space. The U.S. EXIM bank will need a new slate of board members in January 2025, as three of the four current board members’ terms end January 20, 2025, and EXIM faces a reauthorization in 2026, offering an opportunity to rethink what tools and capabilities EXIM should have.

https://www.csis.org/analysis/us-exim-bank-age-great-power-competition


Export credit and West vs Chinese strategic minerals

(Mining News, Perth, 19 June 2024) Australian Strategic Materials (ASM) is aiming to become the first global company to go from rare earths mining all the way through to metals. Rare earths are considered critical minerals and demand is set to surge, making ASX-listed ASM well-placed to capitalise as it holds holds one of the country's most advanced rare earth element deposits, the Dubbo Project, in New South Wales. ASM made significant headway in this area when it recently received non-binding letters of interest from the Export-Import Bank of the United States (US EXIM) for up to US$600 million, and up to A$400 million from Export Development Canada (EDC) in debt financing for the Dubbo Project, in addition to conditional finance support of A$200 million previously received from Export Finance Australia. Interest from US and Canadian agencies stems from enhanced policy alignment between Australia and North American jurisdictions on the importance of establishing an alternative critical minerals supply chain. "They needed a non-China source of material, so for us, being an early leader in it means we're now in this process where we're validating our product with all of them to qualify to be a supplier," ASM Director Rowena SmithSmith said.

https://www.miningnews.net/resourcestocks/resourcestocks/4324628/australian-stra...


EU adopts sanctions against Russia including billions of ECA support for Ukraine

(EU-Neighbours-East, Brussels, 24 June 2024) The Council of the European Union today adopted a 14th package of economic and individual restrictive measures against Russia, “dealing a further blow to Putin’s regime and those who perpetuate his illegal, unprovoked and unjustified war of aggression against Ukraine”. These measures are designed to target high-value sectors of the Russian economy, like energy, finance and trade, and make it ever more difficult to circumvent EU sanctions. Since the Russian aggression started, the EU and its financial institutions have mobilised €50 billion to support Ukraine’s overall economic, social and financial resilience in the form of macro-financial assistance, budget support, emergency assistance, crisis response and humanitarian aid. the Executive Vice President of the European Commission Valdis Dombrovskis announced the Ukraine Facility budget which will be 33 billion euros in loans and 17 billion euros in grants. Of the total amount, 38.27 billion euros will support the budget, 6.97 billion euros will go to the investment fund and 4.76 billion euros will be for technical and administrative support. [ECA Watch note: This month's news review for What's New turned up many articles announcing a €300 million export credit guarantee facility under the EU flagship investment programme InvestEU.]

https://euneighbourseast.eu/news/latest-news/sanctions-circumvention-and-energy-...


World Bank: How can we unlock infrastructure finance at scale for developing countries?

(World Bank Blog, Washington, 5 June 2024) In a world that has become more and more divisive, economic growth, supply chains, borrowing costs, and inflation have been impacted, leaving governments in emerging economies scrambling for funding and solutions to provide the infrastructure services needed for the millions of households left behind. Against this backdrop, private capital mobilization can play a crucial role in addressing this gap. We must optimize scarce public finance and invest in ways that generate sustainable private sector participation. We at the World Bank wanted to gather market intelligence from financiers to understand how the infrastructure financing landscape is responding to global events, specifically on the availability and affordability of finance for emerging markets and developing economies. In collaboration with PricewaterhouseCoopers, the World Bank conducted a survey to gather perspectives on these dynamics from international and domestic commercial lenders, export credit agencies, insurers and reinsurers, international and domestic equity sponsors, and development finance institutions.

https://blogs.worldbank.org/en/ppps/how-can-we-unlock-infrastructure-finance-at-...


UKEF's implementation of the Equator Principles (1 April 2023 to 31 December 2023)

(UKEF, London, 25 June 2024) UK Export Finance (UKEF) adopted the Equator Principles (EPs) on 31 March 2016, joining what now comprises 128 other banks and Export Credit Agencies (EP Financial Institutions or EPFIs) in applying this global guidance for environmental, social, and human rights (ESHR) risk management when financing projects. During the reporting period 1 April 2023 to 31 December 2023, UKEF contributed to the planning and management of the mid-year workshop and celebration event that was held in London to mark 20 years of the Equator Principles. UKEF continues to follow the OECD Recommendation on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (OECD Common Approaches), currently dated 25 March 2024, which applies alongside the Equator Principles as outlined in the Policy and Practice on Environmental, Social and Human Rights due diligence and monitoring (ESHR Policy). The report lists projects supported within the scope of the Equator Principles and provides links to documents on social impacts, social risks, project-related human rights and sustainability.

https://www.gov.uk/government/publications/ukefs-implementation-of-the-equator-p...


Nigerian Civil societies urge China to rescind proposed East African crude pipeline project

(Nigerian Tribune online, Ibadan, 26 June 2024) Civil society organisations have called on the Chinese government to rescind its decisions to build crude oil pipeline across East African countries. In an open letter to the Chinese Embassy’s Charge d’affaire Zhang Yi, Smith Nwokocha of StopEACOP Nigeria called on China to stand with people on the right side of history and not finance the EACOP projects. He explained that as a local civil society organisation working alongside people who directly and indirectly have been or will potentially be impacted by the East African Crude Oil Pipeline project and the associated upstream oil projects (the EACOP projects) in Uganda, Tanzania, and the Democratic Republic of the Congo (DRC), together, and alongside partners across the world, operate as the StopEACOP Coalition. “China’s reported support is in stark contrast with the assessments of major global financial institutions, and as a result is being seen as the last resort for saving these deeply controversial projects. As of 26 June 2024, 28 insurance and reinsurance companies, 4 Export Credit Agencies, 27 commercial banks and the African Development Bank have publicly ruled out support for EACOP.” “Several have explicitly attributed their decision to concerns over EACOP’s ongoing and anticipated environmental and social impacts. For example, Standard Chartered Bank, which was considering financing the project, ultimately declined to do so after conducting an environmental and social due diligence assessment.” “A range of studies by various independent experts, international organisations, as well as local civil society organisations that support the project affected people, have shown that the EACOP project and the associated Tilenga and Kingfisher oil field projects will bring high risks to climate, biodiversity, and RAMSAR wetlands, as well as the livelihoods of local communities and sustainable development of our countries.”

https://tribuneonlineng.com/cso-urges-china-to-rescind-proposed-east-african-cru...


QatarEnergy, Chevron Phillips Secure $4.4 Bln Financing for Petrochemicals Project

(Asharq Al-Awsat, London, 1 July 2024) QatarEnergy and Chevron Phillips Chemical Company LLC announced on Monday [10 October 2023?] that they have secured $4.4 billion financing for the Ras Laffan Petrochemicals project. The project financing comprises commercial and Islamic lenders and a group of export credit agencies. “This oversubscribed financing package is an important testament to the financial community’s confidence in Qatar and in its energy and petrochemical industries,” said Qatar's Minister of State for Energy Affairs and President and CEO of QatarEnergy Saad bin Sherida al-Kaabi. Ras Laffan Petrochemicals is a joint venture company owned 30% by Chevron Phillips Chemical and 70% by QatarEnergy, the statement added. [Interestingly a search of dozens of web sites on this project does not find any names of the commercial, Islamic or ECA financers of the $4.4 million!]

https://english.aawsat.com/business/4596466-qatarenergy-chevron-phillips-secure-...


Brazil’s Petrobras tightens ties with Chinese banks and Sinosure

[BNAMERICAS, Santiago, 10 June 2024) Brazil’s state-run oil company Petrobras is tightening its financial ties with China. The federal oil giant's actions in this area have gathered momentum since the beginning of 2023, when President Luiz Inácio Lula da Silva assumed the country's presidency. Last year, Petrobras signed MOUs with China Development Bank (CDB) and Bank of China to assess investment opportunities and cooperation in low carbon initiatives and green finance. Last week, the company announced it had signed an MOU with China’s export credit agency Sinosure, with the same goals. The deal with Sinosure followed a series of agreements inked with Chinese companies such as China Petrochemical Corporation (Sinopec), China National Offshore Oil Corporation (CNOOC), China Energy International Group and Citic Construction Co. (CITIC).

https://www.bnamericas.com/en/analysis/brazils-petrobras-tightens-ties-with-chin...


JBIC fires up US$1bn loan for Australian LNG project

(Global Trade Review, London, 4 June 2024) Perth-headquartered Woodside Energy has secured a US$1.45bn loan package from Japan’s export credit agency and a group of private lenders, backing an LNG development off the Australian coast. As part of the deal, the Japan Bank for International Cooperation (JBIC) is providing a US$1bn loan that Woodside will use for its Scarborough Energy Project, which is slated to start delivering LNG by 2026. The facility will ensure a long-term and stable supply of LNG for Japan, says JBIC in a statement.

https://www.gtreview.com/news/asia/jbic-fires-up-us1bn-loan-for-australian-lng-p...


SACE EUR 100mln Push Facility provided to Eastern & Southern African Trade & Development Bank

(Zawya, Nairobi, 23 June 2024) The Eastern and Southern African Trade and Development Bank Group (TDB Group), SMBC Group (SMBC), Citi, and SACE are pleased to announce a EUR 100 million SACE Push Facility. This syndicated facility aims to support TDB's mission of fostering regional growth and integration, while increasing Italian procurement through the involvement of TDB and its clients. The facility aims to support various sectors across TDB’s member countries, promoting economic growth, job creation, and sustainable development. By encouraging the involvement of Italian companies in projects within member states, the agreement will foster cross-border cooperation and economic integration in alignment with the African Continental Free Trade Area (AfCFTA) and the Sustainable Development Goals (SDGs).

https://www.zawya.com/en/press-release/companies-news/eur-100mln-first-of-its-ki...


India mulls overhaul of trade finance market

(Global Trade Review, London, 5 June 2024) India’s government has commissioned a wide-ranging review of the country’s trade finance sector, including examining the role of export credit agencies and the possible introduction of laws recognising digital trade documents. The Ministry of Commerce and Industry believes a lack of trade finance is holding India back from achieving its target of exporting US$2tn-worth of goods and services by 2030, more than double last year’s figure of US$765.6bn.

https://www.gtreview.com/news/asia/india-mulls-overhaul-of-trade-finance-market/


SMEs should make more use of UKEF's little-known GEF

Daily Business Group, London, 5 June 2024) Smaller firms and banks are being urged to make more use of the General Export Facility (GEF), a relatively unknown but valuable government scheme. It is designed to boost Britain’s SME exports by providing an 80% guarantee to banks for loans to businesses specifically engaging in exports. GEF is one of several export finance initiatives overseen by the government’s Export Credit Agency which in 2023 provided around £6.5 billion of financial support to UK exporters.

https://dailybusinessgroup.co.uk/2024/06/smes-should-make-more-use-of-little-kno...


What's New for May 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

  • U.S. EXIM Funding Fossil Fuels Abroad
  • End Polluter Welfare Act Supported by Over 300 US Organizations
  • US EXIM enters the battle against Chinese boycott of Lithuania
  • Audit slams US EXIM for weak performance in Africa
  • Bumper year for trade credit insurance, but claims rising
  • K-SURE to provide $1.3 bn credit for Saudi petrochemical project
  • Scottish firms win in 1st UKEF deal for oil & gas de-re?-commissioning
  • Vietnam's says HSBC to arrange funds for $1.49 bln refinery project
  • SACE LAUNCHES US$1.3 BILLION INVESTMENT PACKAGE FOR VIETNAM
  • World Bank Group, NEXI to Bolster Investments in Developing Countries
  • HKECIC signs Guangdong pact with Sinosure
  • Etihad Credit Insurance records 21-fold growth
  • UK Export Finance unveils ambitious new target for SME support

U.S. EXIM Funding Fossil Fuels Abroad

(Living on Earth, Lee NH, 3 May 2024) Despite an international agreement to phase out financing for fossil fuel projects abroad, the Biden administration recently approved a $500 million dollar loan guarantee for an oil and gas drilling project in Bahrain. The Biden-Harris administration is coming under fire for failing to keep its promise to stop funding international fossil fuel projects. One of those critics is Nina Pušić, senior climate finance analyst with the advocacy group Oil Change International. At the U.N. Climate Conference in 2021, which was called COP26 in Glasgow, 39 governments and public finance institutions signed on to this initiative called the Clean Energy Transition partnership, also known as the Glasgow Statement. They promised that within one year they would stop new direct financial support to fossil fuel projects within the year. It was the Biden administration who signed on. So even though the Biden administration has promised that U.S. government agencies would stop funding fossil fuels, U.S. EXIM and DFC have decided that they're going to continue doing that regardless. And it wasn't just at the U.N. Climate Conference in 2021 where the Biden administration signed on to this, but it was also at the G7 in 2022. So it's not only one but actually two international commitments that this administration made.

https://www.loe.org/shows/segments.html?programID=24-P13-00018&segmentID=1


End Polluter Welfare Act Supported by Over 300 US Organizations

(Sierra Club, Washington, 23 May 2024) Senator Bernie Sanders (I-VT) and Representative Ilhan Omar (D-MN) reintroduced the End Polluter Welfare Act, the most comprehensive legislative proposal to address the billions in special interest subsidies that disproportionately flow to the oil, gas, and coal industries. The reintroduction comes with the support of over 300 environmental, climate, consumer protection, and frontline organizations who have signed an organizational letter backing the legislation. These subsidies include century-old tax loopholes, giveaway leasing rules for extraction on our public lands and waters, and newer investments of billions into false solutions that keep fossil fuel projects alive for decades longer through investments from export credit and development finance agencies.” Among the over 300 signatories are prominent organizations such as the Sierra Club, Greenpeace USA, Friends of the Earth U.S., Oxfam America, People's Action, Public Citizen, Sunrise Movement, Oil Change International, WE ACT for Environmental Justice, 350.org, and the League of Conservation Voters.

https://www.sierraclub.org/press-releases/2024/05/senator-sanders-and-representa...


US EXIM enters the battle against Chinese boycott of Lithuania

(ABC News, Washington, 27 May 2024) After Lithuania allowed Taiwan's de-facto embassy in Vilnius to bear the name Taiwan, instead of Taipei — Taiwan's capital city — as preferred by Beijing, Lithuanian businesses saw their cargo shipments to and from China stranded, and they were warned by major European businesses that Lithuanian-made auto parts would be barred from products for the Chinese market. Instead of caving in, Lithuania asked for help and American diplomats sought new markets for Lithuanian goods. The Export-Import Bank in Washington provided Vilnius with $600 million in export credit, and the Pentagon signed a procurement agreement with the country. The U.S. State Department has set up an eight-person team known as “the firm” to provide help to countries cut off from Chinese trade. Other examples: When a Norwegian committee in 2010 awarded the Nobel Peace Prize to a Chinese dissident, Beijing stopped buying salmon from the Nordic country. Two years later, China rejected banana imports from the Philippines over a territorial dispute in the South China Sea. In 2020, Beijing responded to Australia’s call for an investigation into the origin of the COVID-19 pandemic by raising tariffs on Australian barley and wines.

https://abcnews.go.com/US/wireStory/china-threatened-trade-countries-after-feuds...


Audit slams US EXIM for weak performance in Africa

(Semafor, Legos, 23 May 2024) A scathing evaluation of the US Export-Import bank’s uneven approach to supporting US trade with sub-Saharan Africa has put its management on the backfoot. It comes the bank scrambles to make the opposite case with a slew of recent deal announcements. The report from the Office of the US Inspector General said the export credit agency had failed to expand its performance to achieve its sub-Saharan Africa mandate and in fact declined over the evaluation period from 2014 to 2023. It also found that, despite multiple Exim officials taking initiatives related to the region, there was no specific program or office designated with the responsibility. A senior Exim official pushed back at the report for not providing “a comprehensive picture of our efforts” in the region where it has a total exposure of over $8 billion.

https://www.semafor.com/article/05/22/2024/us-exim-bank-slammed-for-weak-perform...


Bumper year for trade credit insurance, but claims rising

(Global Trade Review, London, 29 April 2024) Export credit agencies and commercial trade credit insurers have celebrated an “exceptional” year for some key product lines, but are also experiencing a sharp rise in claims from customers, newly released data shows. New short-term trade credit insurance business rose 6% year-on-year to US$2.8tn in 2023, while medium and long-term (MLT) business shot up by 40% to US$165.4bn, according to a snapshot of full-year 2023 data released by the Berne Union on April 25.

https://www.gtreview.com/news/global/bumper-year-for-trade-credit-insurance-but-...


K-SURE to provide $1.3 bn credit for Saudi petrochemical project

(Maeil Business News, Seoul, 24 May 2024) The Korea Trade Insurance Corp. (K-SURE), an export credit agency, said on Thursday that it will provide mid- to long-term export financing worth 1.7 trillion won ($1.3 billion) for the mega-scale Amiral petrochemical complex project in Saudi Arabia won by South Korean construction company Hyundai Engineering and Construction Co.

https://pulse.mk.co.kr/news/english/11023594


Scottish firms win in 1st UKEF deal for oil & gas de-re?-commissioning

(UKEF, London, 1 May 2024) UK Export Finance (UKEF) has closed its first ever transaction supporting overseas oil and gas decommissioning, securing finance for a major contract which benefits over 70 Scottish firms. The export credit agency has issued a $7.5 million guarantee which allows Brazilian contractor Ocyan to secure financing from ABC International Bank plc for new equipment from Scottish business Maritime Developments Ltd (MDL).  However in another online article, it turns out that this contract could be to remove old pipelines so as to re-commission idle oil rigs! UKEF does not name the rigs to be decommissioned. Yahoo Finance notes that "The contract [with Ocyan] will help Petrobras maintain a reliable supply of natural gas to its customers. The revitalized pipelines [eg Jorge Mitidieri and Renato Duque] will be able to transport additional gas, which will help meet the growing demand for natural gas in Brazil. Cost Savings: The deal will also help Petrobras in reducing costs. The new [recommissioned] pipelines will be more efficient than the old ones, which will help PBR save money on energy costs." It is not clear whether the decommissioned rigs are to be revamped or abandoned. Brazil is home to over 25% of the global FPSO fleets. At any rate, Brazil is clearly not leaving the offshore oil/gas rig industry thanks to UKEF, as implied by their press release.

https://www.gov.uk/government/news/scottish-firms-win-in-first-uk-export-finance...


Vietnam's says HSBC to arrange funds for $1.49 bln refinery project

(Tank Terminals, Hong Kong, 17 May 2024) Binh Son Refining and Petrochemical JSC (BSR), a subsidiary of state-owned Petrovietnam and operator of the Dung Quat oil refinery, has selected HSBC to coordinate an export credit agency (ECA) arrangement for a $1.49 billion expansion. In March, BSR had said it would spend VND36,397 billion ($1.49 billion) on expanding the refinery, increasing its capacity by 16% to 171,000 barrels per day or 7.6 million tons a year. The expansion also aimed to make products meet Euro V emission standards and other environmental requirements, while improving the facility’s flexibility to refine different kinds of crude oil. BSR aims to put the plant into operation in 2028 after 37 months of construction.

https://tankterminals.com/news/hsbc-to-arrange-financing-for-1-49-bln-expansion-...


SACE LAUNCHES US$1.3 BILLION INVESTMENT PACKAGE FOR VIETNAM

(ICE, Vietnam, 9 May 2024) Italian ECA SACE has unveiled a US$1.3 billion aid package aimed at supporting Italian businesses in Vietnam. Vietnam, one of the fastest-growing economies in Southeast Asia, has become a focal point for Italian companies seeking investment opportunities, said a SACE representative.“With a capital support plan of up to US$1.3 billion, Italian businesses as well as Vietnam will have easier access to technology and supplies from Italy to promote investment and development,” said Michal Ron, head of International Business at SACE, at a press conference on May 7.The funding will prioritize sectors such as renewable energy, manufacturing, and agriculture.

https://www.ice.it/it/news/notizie-dal-mondo/262621#:~:text=HCMC%20%E2%80%93%20S...


World Bank Group, NEXI to Bolster Investments in Developing Countries

(IFC, Washington, 28 May 2024) The World Bank Group's Multilateral Investment Guarantee Agency (MIGA) and International Finance Corporation (IFC) today signed three-year cooperation agreements with Nippon Export and Investment Insurance (NEXI), the official export credit agency of Japan, to promote foreign direct investment in developing countries. The agreements underscore the organizations' shared commitment to expanding investment opportunities and mitigating risks in developing countries. The cooperation between MIGA and NEXI builds on a 2020 agreement aimed at facilitating Japanese investment in developing countries through co-insurance and reinsurance instruments.

https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=28196


HKECIC signs Guangdong pact with Sinosure

(The Standard, Hong Kong, 23 May 2024) The Hong Kong Export Credit Insurance Corporation signed a pact with the Guangdong Branch of China Export & Credit Insurance Corporation, Sinosure, yesterday to strengthen cooperation on export credit insurance services for businesses across Guangdong and Hong Kong.

https://www.thestandard.com.hk/section-news/section/47243699/262974/HKECIC-signs...


Etihad Credit Insurance records 21-fold growth

(24-7 Press Release, Seattle, 23 May 2024) Etihad Credit Insurance (ECI), the UAE Federal export credit company, unveiled its growth trajectory in its annual report for 2023. With a gross exposure of AED 9.6 billion (US$2.61 billion), ECI experienced a 21-fold increase compared to 2019. ECI's supported UAE exporters across 17 sectors in 110 countries, amounting to a non-oil trade and investment of AED 14 billion in 2023. This was facilitated by 21 agreements with government export credit agencies.

https://www.24-7pressrelease.com/press-release/511094/etihad-credit-insurance-re...


UK Export Finance unveils ambitious new target for SME support

(Global Trade Review, London, 1 May 2024) UK Export Finance (UKEF) has vowed to support 1,000 SMEs per year before the end of the decade, a big jump on current levels. The export credit agency (ECA) unveiled the target in its 2024-29 business plan this week. The plan also includes pledges to enable £12.5bn of export contracts and provide £10bn of “clean growth” financing by 2029. UKEF’s support for SMEs is closely scrutinised by UK lawmakers, because small businesses tend to find it harder to secure trade and export finance, compared to their larger peers. A handful of large companies, such as Rolls-Royce and BAE Systems, have previously scooped up the largest share of UKEF’s financial support by value. While the number of SMEs benefiting from UKEF’s backing is already high as a proportion of the agency’s overall customers, it still falls far short of the target of 1,000. Around 210 of the 251 customers UKEF supported in the 2023-24 financial year were SMEs. UKEF says it plans to boost its assistance to SMEs partly by on-boarding non-bank financial institutions that specialise in small business finance. A source at UKEF says such financial institutions would likely provide financing backed by a UKEF general export facility guarantee and need to have prior experience with trade finance. UK Export Finance (UKEF) typically charges premium rates of 6% to 7%, higher than other European ECAs according to an annual benchmarking report from the British Exporters Association.

https://www.gtreview.com/news/europe/uk-export-finance-unveils-ambitious-new-tar...


Pages