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 November 2023

"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?

Joint letter from 125 international CSOs to global leaders at COP28 calling for transformative public finance for a globally just energy transition

(ECA-Watch, 1 December 2023) As climate disasters intensify and as more people than ever are forced to choose between heating and eating, or transport and shelter, we called on the leaders of our governments and public finance institutions to work together at COP28 to end the fossil fuel era and build in its place a 100% renewable economy that works for everyone. There is no shortage of public money available to do this, it is just poorly distributed, flowing to fossil fuels and the super-rich instead of shared priorities. Some ECAs and insurers have dialled back their involvement in traditional energy sector projects in recent years, but renewable energy still only accounts for about 5% of total new longer-tenor commitments. Such support is less than the US$12bn provided to the natural resources industry – which includes the exploration and extraction of hydrocarbons – and the US$18bn supplied to traditional energy projects. This is because a handful of Global North governments and corporations hold outsized control over global monetary, trade, tax, and debt rules as well as our international financial institutions (IFIs). At COP28, public finance finds itself at a crossroads. IFIs and the Global North governments who largely control them must stop their over reliance on the private sector as the vehicle to fund climate solutions — an approach that has consistently under delivered and often caused great harm. We urgently need public finance policy, priorities, and governance to push instead towards a 1.5C-aligned just energy transition rooted in collective wellbeing and global and local equity. To do this, we will need to transform public finance institutions to be equitable, democratic, rights-upholding, feminist, sustainable, and transparent. We will also need to write new financial architecture rules that will ensure Global North governments and corporations pay their fair share for the crises we face, and also prioritize channeling finance for a just transition though institutions which are democratically accountable to Global South countries and peoples. We have enough money to have a full, fast, fair, and funded fossil fuel phase out and build a fair and 100% renewable economy in its place, what is lacking is political courage. For the sake of people and planet, COP28 must mark a turning point in your approach to public finance. Organizations wishing to add their support for this call may add their signatures to the letter after release through this link




Environmental groups urge funding halt for TotalEnergies' Mozambique project

(Times Live, Johannesberg, 17 November 2023) Banks and other financiers should withdraw their support of TotalEnergies' $20 billion liquefied natural gas (LNG) terminal in Mozambique, environmental lobby groups urged in a letter sent to more than two dozen project funders on Friday. The letter, seen by Reuters, comes at a crucial juncture for the French energy company as it prepares to relaunch Africa's largest foreign direct investment project. Activists warn the project may worsen climate change and fuel human rights abuses in the impoverished southern African nation. “As a critical financial supporter of the project, you bear a direct and important responsibility in its dreadful impacts,” the letter, supported by more than 100 organisations, including ActionAid International and Greenpeace France, said. Last month, lawmakers in the Netherlands said they would insist on being consulted on safety and human rights concerns before they can approve a 1 billion euro ($1.06 billion) loan guarantee for the project, stalled since April 2021. TotalEnergies said before Friday's letter that arrangements for project finance remain in place despite a 'force majeure' halt in 2021 when Islamist militants threatened the project site. Financing agreements for the project were struck in 2020 with direct and covered loans from eight export credit agencies, 19 commercial banks and the African Development Bank (AfDB).

https://www.timeslive.co.za/news/africa/2023-11-17-environmental-groups-urge-fun...


EU, UK, and Canada move to phase out fossil fuel finance at OECD

(Price of Oil, Washington, 8 November 2023) This week in Paris, some of the world’s wealthiest countries met at the Organisation for Economic Co-operation & Development (OECD) headquarters to discuss how Export Credit Agencies (ECAs) – the world’s largest public financiers for fossil fuels – can be aligned with climate goals. The UK, Canada and the EU put forward proposals to extend coal restrictions to oil and gas. The United States – a key influencer in the OECD process – did not take position on the proposal yet, despite President Biden’s multiple promises at the G7 and at the 2021 COP26 UN climate talks to end public finance for fossil fuels. Japan and South Korea, two of the world’s biggest financiers of international fossil fuel projects, also failed to come out in support of the proposal, despite both countries signing of the Paris climate agreement and Japan’s G7 commitment to end its international public finance for fossil fuels.

https://priceofoil.org/2023/11/08/eu-uk-and-canada-move-to-phase-out-fossil-fuel...


OECD oil and gas export credit fossil fuel ban postponed to next year

(Global Trade Review, London, 15 November 2023) A proposal to end export finance for oil and gas supported by the UK, EU and Canada will remain under discussion at next year’s OECD meetings after being tabled last week during negotiations in Paris. If agreed, the proposal would see a ban on export credits for new oil and gas projects, following the approach taken to prevent export credit agencies (ECAs) from financing unabated coal-fired power plants. The current proposal calls for a similar prohibition on oil and gas, a move that would bypass the transition stage seen in the approach to coal of an emission threshold coming before an overall ban. “The EU and UK position expands that coal-fired power prohibition to include all fossil fuels and all parts of the fossil fuel value chain, with some exceptions,” says Nina Pušić, OECD export finance climate strategist at Oil Change International (OCI), speaking to GTR from the negotiations. This could be a stumbling block in securing the agreement of the remaining eight countries in the Arrangement on Officially Supported Export Credits: Australia, Japan, Korea, New Zealand, Norway, Switzerland, Turkey and the US. According to OCI, Japan and Korea together provide on average more than US$16bn in oil and gas financing, based on 2018-2020 levels, while OECD ECAs provided an average of US$41bn per year in export support to fossil fuels between 2018 and 2020. The OECD is set to meet again in Q2 next year.

https://www.gtreview.com/news/sustainability/oecd-oil-and-gas-export-credit-ban-...


Where are the Cop26 finance pledges now?

(Climate Change News, Broadstairs UK, 3 November 2023) At Cop26 in Glasgow, hundreds of governments and private institutions joined forces in a series of pledges promising ambitious goals on methane reduction, forest protection and the shift of finance away from fossil fuels. End new direct public support for the international unabated fossil fuel energy sector by the end of 2022, except in limited and clearly defined circumstances that are consistent with a 1.5°C warming limit and the goals of the Paris Agreement. 34 countries and five development banks – predominantly from wealthy cuontries – signed up to the pledge at Cop26. These included the G7 nations – with the exception of Japan – and most EU member states. HOW IT IS GOING: Among the signatories that give lots of money to the energy sector, the vast majority have introduced policies in line with the promise made in Glasgow. The United Kingdom, France, Denmark, New Zealand, Canada, Finland and Sweden have stopped providing loans and guarantees for oil and gas extraction and processing overseas through their export credit agencies. Their actions have shifted at least $5.7 billion per year in public finance out of fossil fuels and into clean energy, according to analysis by Oil Change International and E3G. On the other hand, however, the USA, Italy and Germany have continued funding international fossil fuel projects in 2023 in breach of the pledge. They were supposed to stop funding foreign fossil fuels by December 2022. But since then, they collectively approved over $3 billion in financial support to oil and gas overseas programmes. Most of the funding comes in the form of state-backed guarantees provided by export credit agencies. These products limit the risk taken by companies selling services and goods in other countries, influencing investment.

https://www.climatechangenews.com/2023/11/03/forests-methane-finance-where-are-t...


Saudi Arabia Courts African Leaders to keep the world hooked on oil

(Foreign Policy, Washington, 15 November 2023) Riyadh hosted African leaders last Friday at the first Saudi-Africa summit on fostering trade ties. Among other measures, Saudi Crown Prince Mohammed bin Salman proposed $10 billion to finance and insure Saudi exports through 2030 and an additional $5 billion in development financing for African nations. A New York Times article on Saudi efforts notes that the kingdom is working to keep fossil fuels at the center of the world economy for decades to come by lobbying, funding research and using its diplomatic muscle to obstruct climate action. The Arab Africa Trade Bridges Program, a multi-donor, inter-regional program, has signed two agreements aimed at fostering sustainable growth and development on the sidelines of the Intra Africa Trade Fair 2023 in Cairo with support from the International Islamic Trade Finance Corporation. In addition,  Africa’s Global Bank, United Bank for Africa, UBA, Plc, and the Saudi Export-Import Bank, Saudi EXIM have entered into a partnership aimed at strengthening business growth and enhancing economic cooperation between their economies.

https://foreignpolicy.com/2023/11/15/saudi-arabia-africa-mbs-debt-investment-dev...


ExxonMobil and ECAs make moves on lithium

(Global Trade Review, London, 15 November 2023) Oil supermajor ExxonMobil has unveiled plans to become a “leading producer” of lithium ahead of an expected leap in demand for battery metals – but for pure commodity traders, big moves remain a more distant prospect. Export credit agencies (ECAs) are also upping involvement in lithium production. In August, ECAs from Australia, South Korea and the US revealed they were considering providing a US$195mn package of support for a lithium mine in the Australian outback, which is expected to produce 15,000 tonnes of lithium carbonate equivalent per year. A new report from Both ENDs and FARN explores the case of lithium mining in Argentina and provides recommendations for making a just transition to sustainable energy systems. It explores the extraction of these minerals which requires investments, and how export credit agencies (ECAs) are increasingly looking for ways to support businesses that do what they call "green projects" abroad, projects which are promoted under a market logic, but with rhetoric linked to the climate crisis and energy transition. This raises the question: should they? And, moreover, is mining for critical minerals a green investment? And are export credit agencies the right agent to help promote a just energy transition?

https://www.gtreview.com/news/global/exxonmobil-makes-big-move-on-lithium-but-co...


Banks urge OECD to resurrect 5% down-payment rule

(Global Trade Review, London, 22 November 2023) Export finance banks are urging members of the OECD Arrangement on Officially Supported Export Credits to reinstate the rule reducing the down-payment threshold for emerging market borrowers to 5% amid escalating debt risks. On November 4, a temporary common line which had allowed export credit agencies (ECAs) to cover up to 95% of the total export contract value on sovereign transactions – involving category II (non high income) nations – came to an end. The common line was first introduced in late 2021 to counter reported constraints in the private insurance market, and was renewed last November for a further 12 months. The temporary rule has now been formally wound down and any new ECA deals involving sovereign borrowers must revert to financing 15% of the contract on commercial terms. In another development, negotiators secured a modernisation of the OECD Arrangement on Officially Supported Export Credits in March which saw maximum repayment terms for export credit agency (ECA)-supported, climate-friendly projects extended to 22 years, while the maximum tenor for all projects was upped from 10 to 15 years. Revised repayment terms under the OECD framework on export credits could be challenging for banks, prompting increased demand for alternative means of funding, according to industry experts. It will be challenging for certain banks, especially in the current macroeconomic climate. All the banks are struggling with much higher funding costs compared to two or three years ago,” said Nazli Konac Edgu, director of export and agency finance at Citi.

https://www.gtreview.com/news/global/banks-urge-oecd-to-resurrect-down-payment-r...


Russian export credit claims soar

(Global Trade Review, London, 7 September 2023) The export credit insurance market saw claims jump by more than 700% in Russia last year, as the industry grappled with the fallout of the Ukraine crisis and western sanctions, Berne Union research shows. Short-term export credit claims involving obligors in Russia and the Commonwealth of Independent States (CIS) region increased by US$229mn from a year earlier, the union’s State of the Industry report for 2022 finds. Payouts in Europe also rose by US$118mn year-on-year as businesses felt the indirect impact of Russia’s full-scale invasion, which disrupted supply chains for critical inputs and drove up commodities prices. The data reveals how export credit agencies (ECAs) and trade credit insurers were stung by the Ukraine war, despite efforts to swiftly cut cover for Russian firms in the early weeks of the crisis due to financial and reputational risks. The analysis by the Berne Union, a global association representing ECAs and private insurers, shows new short-term export credit business in Russia and CIS fell from US$34bn to US$16bn – by more than 70% – as insurers pulled back. Arrears – or overdue payments by borrowers in the medium to long-term segment – rose by 11% or nearly US$8bn. On a brighter note for the industry, overall claims paid out by ECAs and insurers on their policies fell to US$7.7bn – a decline of about US$1bn – following a 33% drop in claims in the transportation sector, the data shows.

https://www.gtreview.com/news/global/russia-export-credit-claims-soar-as-market-...


EDC uses environmental review directives on less than 1% of transactions

 (Globe & Mail, Toronto, 3 November 2023) Canada’s export financing agency applies its own flagship environmental and social review process in less than 1% of the transactions it supports, the Auditor-General of Canada’s office has found. An audit report released to Parliament Thursday determined that of nearly 7,800 loans EDC supported between May, 2019, and March, 2023, just 33 (or 0.4%) were reviewed under EDC’s Environmental and Social Review Directive. The report recommended that EDC apply the directive more broadly and warned that when it does not, it’s at elevated risk of financing projects that increase greenhouse gas emissions, harm biodiversity and violate human rights, and operating at cross-purposes to the federal government’s own commitments.

https://www.theglobeandmail.com/business/article-edc-uses-environmental-review-d...


Spillover effects of the Ukraine crisis: political risk insurance in times of brinkmanship

(Berne Union, London, 7 September 2023) A Berne Union report investigates how political risk insurance can be approached amid the ongoing effects of the pandemic, geopolitics and the evolving Russia/Ukraine crisis. The search for new, diversified suppliers of strategic materials to support the energy and technological transition may result in fresh investment flows for countries with both limited stability and little capacity in order to handle the amount of investment and operations required. Apart from China and Russia, several of the sovereigns that are likely to emerge as incremental suppliers were rated B or lower, even before the current crisis, and/or possess a country risk category that could make the cost of financing excessive or further complicate their fiscal position in the short- to medium-term.

https://www.berneunion.org/Articles/Details/664/Spillover-effects-of-the-Ukraine...


World's largest car theft and the Swedish ECA

(The Times of India, Delhi, 9 November 2023) According to the Swedish Export Credit Agency, the interest and unpaid penalties on 1,000 Volvo cars, have racked up a breathtaking USD 322 million still owed. The 1974 order for the batch of 1000 Volvo 144 sedans to be used as taxis was given by Kim Jong Un’s grandfather, Kim Il Sung. Later, the Swedish government paid Volvo in full from public funds but is still waiting to retrieve the money from North Korea. The batch of vehicles, a significant component of a 1974 agreement, is now at the centre of what is considered to be the 'biggest car heist' in history.

https://timesofindia.indiatimes.com/auto/news/worlds-largest-car-theft-was-done-...


Offshore wind firm secures £370 million government-backing to expand UK business

(Insider, Glascow, 16 November 2023) UK Export Finance (UKEF) has issued a loan guarantee so that Seaway7 can access a £370m funding package under its Export Development Guarantee so that the offshore wind company can invest in its UK operations. The guarantee covers 80% of the total loan, which has been coordinated by HSBC, with Citibank, Credit Agricole Corporate and Investment Bank, DNB and ING as mandated lead arrangers. UKEF’s backing is expected to help the firm win and service engineering, procurement construction and installation contracts for fixed offshore wind projects which will generate UK export revenue. Zero offshore wind projects were secured by the UK Government in the country’s latest clean power auction early today - dealing “a major blow” to Scotland and the UK’s renewable energy ambitions.

https://www.insider.co.uk/news/offshore-wind-firm-secures-370-31451259


Small nuclear reactor, funded by JBIC, is cancelled

(Friends of the Earth Japan, 13 November 2023) NuScale Power, a U.S.-based company, has announced the cancellation of its plan to build a small nuclear reactor in Idaho, U.S. The Japan Bank for International Cooperation (JBIC), had invested in NuScale in April last year, together with JGC Holdings Corp. and IHI Corporation. JBIC’s investment in NuScale was $110 million. At the time of JBIC’s investment, we pointed out that even under their new guise of “small modular reactors,” SMRs are no different from conventional nuclear power plants in that they have problems such as radioactive contamination over their life cycle, nuclear waste, accident risk, and the risk of becoming targets of terrorism and war. We also pointed out that SMRs, which are touted for their economic efficiency, actually increase the cost per unit of electricity generated, and argued that investors should not invest in high-risk SMRs.

https://foejapan.org/en/issue/20231113/14877/


Rethinking Technology Transfer to Support the Climate Agenda

(SDG/IISD, Winnipeg, 8 November 2023) 2022 was a milestone in global power energy markets. For the first time, total investment in renewable power generation and related products matched or slightly exceeded investment in fossil fuel production. By some estimates, global investment in clean energy could reach USD 1.7 trillion in 2023, led by solar, wind, and electric vehicles (EVs). But the projected growth in low-carbon technologies remains concentrated in a handful of countries or regions – mainly those with the size and fiscal space to promote the green industrial policies that are re-shaping global trade in low-carbon technologies. Overall investment in renewable energy in the majority of emerging market and developing economies (EMDEs) remains low. We need to ensure trade finance plays a bigger role in renewable energy trade. Although estimates vary, roughly 85 national export credit agencies (ECAs) together provide over USD 200 billion, most by offering export credit guarantees, insurance, hedging, and other instruments that together leverage as much as USD 1.5 trillion. The OECD Common Approaches, first adopted a decade ago and revised in 2021, are now lagging behind widening targets and practices, and need to be updated to align with the Paris Agreement.

https://sdg.iisd.org/commentary/guest-articles/rethinking-technology-transfer-to...


Trade credit insurance reaches just 13% of insured shipments

Global Trade Review, London, 22 November 2023) Premiums for trade credit insurance hit US$13.9bn in 2022, a small proportion [0.19%] of the US$7tn in insured shipments where trade credit insurance could have been used, the International Credit Insurance and Surety Association (ICISA) says. Only 13.2% of covered shipments worldwide were protected by trade credit insurance, with the private sector providing more than two-thirds of the cover [vs one-third from official OECD ECAs which supposedly monitor the environmental and ethical elements of international trade?], ICISA says. It estimates world trade to have totalled US$100.6tn last year. In a report released last month, global reinsurer Swiss Re says it expects trade credit insurance premiums to grow to US$14.8bn in 2024 [i.e. .015% of the value of goods traded] despite a slowdown in global trade, which it puts down to rate increases.

https://www.gtreview.com/news/global/trade-credit-insurance-reaches-just-13-of-i...


What's New for October 2023

"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.

  • Fossil Free Export Credit Agencies – a new web resource
  • Alignment of US EXIM with US climate and development policy objectives
  • EXIM Board Unanimously Approves Financing for 3 projects in Romania Kazakhstan and Iraq
  • Israel-Hamas conflict: Indian exporters may face higher risk premiums shipping costs
  • EU and UK seek ban on ECA subsidies for foreign fossil fuel projects
  • ECAs and Reconstruction in Ukraine
  • UKEF Announces Financial Support for Ukraine’s Nuclear Fuel Supply
  • CPChem QatarEnergy finalize financing on $6 bn Ras Laffan Qatar petrochemicals project
  • Afreximbank signs US$300mn deal to support Congolese crude oil production
  • Uganda crude pipeline nears Sinosure $3bn funding deal
  • Hai Long team confirms €3bn Taiwan wind financing deal
  • India's Reliance Jio Secures $2 Bn In Largest FY24 Offshore Loan with Finnvera backing
  • SACE Meets India: Facilitating $1.6 Billion for Green Transitions
  • Germany offers cheaper export credit support in new climate policy
  • ECAs and the airline industry’s financial landscape
  • Afri-Exim  ICRC approve $1.2bn for moribund Burutu port
  • Egypt in talks to secure $2.1 bln loan for 2nd high-speed rail line
  • London Hosts West and Central Africa Trade Forum
  • Citigroup: The future of export agency finance
  • Over 250 organizations support OECD end to $41 billion annual fossil fuel finance

Fossil Free Export Credit Agencies – a new web resource

The climate crisis can't be solved if export credit agencies continue to support fossil fuels. We, a group of concerned civil society organizations, call on governments to immediately end all export credit and other public support for fossil fuels.

https://www.fossilfreeecas.org/


Alignment of US EXIM with US climate and development policy objectives

(Oxfam America, Boston, 16 October 2023) This 51 page study assesses the alignment of the United States Export-Import Bank (EXIM) — the official export credit agency (ECA) of the US — with the country’s climate and development policy objectives derived from relevant Executive Orders (EOs), acts, guidance, and strategic policy documents. Export credit agencies (ECAs) like the Export-Import Bank of the United States (EXIM) are government-backed private or public agencies with a mandate to promote national exports through loans, guarantees, and insurance to domestic companies or foreign buyers. EXIM exerts great leverage by reducing the risk of private investments and, consequently, supports the expansion of specific industry sectors such as aircraft, manufacturing, and oil and gas. In developing countries, ECAs often finance large-scale energy infrastructure projects with significant lifetimes that disproportionately benefit carbon-intensive industries, increasing greenhouse gas (GHG) emissions (OECD n.d.). In fact, ECAs are the largest category of public finance institutions (PFIs) supporting fossil fuel investments. Between 2019 and 2021, G20 ECAs facilitated transactions amounting to $34 billion per year for fossil fuels, over 90 percent of which were for oil and gas. The share of clean energy transactions in ECA portfolios was considerably lower, with only $4.7 billion per year over the same period.

https://webassets.oxfamamerica.org/media/documents/US_EXIM_report.pdf


EXIM Board Unanimously Approves Financing for 3 projects in Romania, Kazakhstan and Iraq

(EXIM, Washington, 22 September 2023) The Board of Directors of EXIM has approved 3 transactions in the energy and transportation sectors. The first transaction a direct loan for more than $57 million to EnergoNuclear S.A. to support pre-construction engineering and feasibility studies for the potential development of two nuclear reactors at the Cernavodă nuclear power plant complex in Romania. The transaction, issued under EXIM’s Engineering Multiplier Program, will support an estimated 200 new jobs in Texas and Illinois. The EXIM Board also approved a $594 million loan guarantee to the national railway of Kazakhstan, KTZ, to support the export of Wabtec locomotive and locomotive shunter kits to KTZ. The transaction will support an estimated 1,500 U.S. jobs. The final transaction approved by the Board was a $240 million guarantee of a loan to the Ministry of Electricity of the Republic of Iraq to finance the export of GE Energy products to support the repair and upgrade of operating gas turbines in ten locations in Iraq. The transaction is estimated to support approximately 500 U.S. jobs across California, Connecticut, Illinois, Ohio, Oregon, Massachusetts, and Nevada. [An aside re Iraq: A recent Brown University study found that the 2003-2011 Iraq war cost the US $2.9 trillion, over 500,000 lives, created 7 million refugees, nearly 8 million displaced persons and a legacy of ISIS like terrorism throughout the world. Pentagon spending since 2001 has totaled over $14 trillion, one-third to one-half of which went to defense contractors.]

https://www.exim.gov/news/export-import-bank-united-states-board-directors-unani...


Israel-Hamas conflict: Indian exporters may face higher risk premiums, shipping costs

(Devdiscours, New Deli, 8 October 2023) Indian exporters shipping goods to Israel may face higher insurance premiums and shipping costs due to the Israel-Hamas conflict, according to experts. For merchandise exports of India, the war may lead to higher insurance premiums and shipping costs. Indian ECA ECGC may charge higher risk premiums from Indian firms exporting to Israel, think tank Global Trade Research Initiative (GTRI) said on Sunday. ECGC Ltd (formerly Export Credit Guarantee Corporation of India Ltd) is wholly owned by the government of India. Mumbai-based exporter and founder chairman of Technocraft Industries India Sharad Kumar Saraf said the conflict may have an impact on Indian exporters in the short run. ''But if the war escalates, things may get bitter for our exporters of that region,'' Saraf said.

https://www.devdiscourse.com/article/headlines/2622608-israel-hamas-conflict-ind...


EU and UK seek ban on ECA subsidies for foreign fossil fuel projects

(Financial Times, Brussels, 29 October 2023) The UK and EU will push the world’s richest countries to end subsidies for foreign oil and gas operations and coal mining at a closed-door OECD meeting next month, according to people familiar with the matter. The proposal to cut off the biggest foreign source of public finance for fossil fuels is expected to spark heated negotiations at the OECD’s Paris headquarters. The move builds on a commitment by some OECD countries to align public finance institutions with Paris agreement goals to limit global warming to well below 2C and ideally 1.5C above preindustrial levels. But the effort to end subsidies for foreign projects will draw attention to the prevalence of domestic subsidies for oil and gas industries, even as a global deal to end fossil fuel production without the emissions captured at the upcoming UN COP28 climate summit looks increasingly unlikely. Ending export credit agencies’ provision of loans and guarantees for fossil fuel projects would be “an essential first step to keeping our international climate goals within reach”, said Nina Pušić, an export finance climate strategist at the US environment campaign group Oil Change International.

https://www.ft.com/content/b4d0e4be-aa81-4345-a004-b76cafc5129e


ECAs and Reconstruction in Ukraine

(Ukraine Recovery, London, 22 June 2023) The Ukraine Recovery Conference 2023 was co-chaired by the UK and Ukraine in London on 21-22 June 2023. The conference was a continuation of the cycle of annual events, with URC 2022 conducted jointly with Switzerland in Lugano. The conference focussed on mobilising international support for Ukraine's economic and social stabilisation and recovery from the effects of war, including through emergency assistance for immediate needs and financing private sector participation in the reconstruction process. URC 2023 showcased the strength and potential of the private sector in supporting Ukraine to “build back better”, working alongside a broad coalition of governments, international organisations and civil society. URC 2023 brought together Leaders, Ministers, and representatives of 59 states, 32 international organisations and international financial institutions, over 500 businesses, and 130 civil society organisations. Press articles this month (October) highlight Swedish, French, Dutch and Canadian support for aid to Ukraine: The Swedish government proposes to allocate SEK 333 million (about $30 million at the current exchange rate) for special export credit guarantees for companies trading with Ukraine; The French state-owned insurance company Bpifrance Assurance Export will insure French companies ready to invest in Ukraine and its recovery without waiting for the war to end; The Netherlands is allocating EUR 102 million for the third support package of assistance to Ukraine in 2023; Export Development Canada, without announcing specific funding has noted that it continues to closely monitor the situation in Ukraine, engage with Canadian exporters and qualified investors interested in the market and provide support through its suite of products.

https://www.urc-international.com/


UKEF Announces Financial Support for Ukraine’s Nuclear Fuel Supply

(Anyuak Media, Warsaw, 12 October 2023) UK Energy Secretary Grant Shapps has made a visit to Ukraine to announce fresh financial support aimed at reducing the country’s reliance on Russia for its nuclear fuel supply. The UK will provide a £192m loan guarantee to Ukraine’s national nuclear company, Energoatom, through the UK’s export credit agency, UK Export Finance. As part of the agreement, UK-headquartered Urenco will supply Energoatom with vital uranium enrichment services necessary for nuclear fuel. Currently, nuclear power accounts for more than half of Ukraine’s electricity generation

https://anyuakmedia.com/uk-to-provide-192m-loan-guarantee-to-boost-ukraine-nucle...


CPChem, QatarEnergy finalize financing on $6 bn Ras Laffan, Qatar, petrochemicals project

(Business Wire, San Francisco, 9 October 2023) Ras Laffan Petrochemicals, a joint venture company owned 30% by Chevron Phillips Chemical and 70% by QatarEnergy, today announced that it has secured $4.4 billion to finance an integrated polymers facility to be located in Ras Laffan Industrial City, Qatar. The project financing comprises commercial and Islamic lenders and a group of export credit agencies. Finalizing the financing is a key milestone in the development of the 435-acre petrochemical project, which will include the largest ethane cracker in the Middle East and one of the largest in the world. The two companies also are constructing a joint venture integrated polymers facility on the Texas Gulf Coast, which is expected to be operational in 2026.  [No information is available on which ECAs are involved.]

https://www.businesswire.com/news/home/20231009250255/en/CPChem-QatarEnergy-fina...


Afreximbank signs US$300mn deal to support Congolese crude oil production

(Global Trade Review, London, 4 October 2023) The African Export-Import Bank has agreed a US$300mn facility with Trident OGX Congo to bump up crude oil production in the Republic of the Congo. Other export credit agencies (ECAs) around the world have come under fire for continuing to finance the oil industry, most prominently the ECAs of western countries whose governments signed up to end international fossil fuel financing for new oil and gas projects. But some claim that global efforts to drastically scale back oil and gas production disadvantages African nations that have not yet reaped the economic benefits of fossil fuels, a tension borne out in the struggle over financing the East African crude oil pipeline. While western economies have had years to prepare for ESG requirements, Gwen Mwaba, director and global head of trade finance at Afreximbank, said that there was now “an expectation for Africa to fall in line immediately, when the reality is that we also need time to find our way on this journey. We should be given that space given how little we contribute to carbon emissions as a continent compared to the western world,” she said.

https://www.gtreview.com/news/africa/afreximbank-signs-us300mn-deal-to-support-c...


Uganda crude pipeline nears Sinosure $3bn funding deal

(Argus Media, Cape Town, 3 October 2023) Chinese export credit agency Sinosure is slated to complete talks with Uganda and oil companies TotalEnergies and CNOOC this month to provide $3bn for the country's crude export pipeline EACOP, after western financiers pulled out due to environmental concerns, Petroleum Authority of Uganda director Ernest Rubondo said today.

https://www.argusmedia.com/en//news/2495169-uganda-crude-pipeline-nears-chinese-...


Hai Long team confirms €3bn Taiwan wind financing deal

(ReNews, Winchester UK, 17 October 2023) Northland Power and its partners have met all conditions and completed the NT$117bn (€3bn) financing for the 1 GW Hai Long offshore wind project off Taiwan. The financing will be provided by 16 international and local banks, including China Trust, Taipei Fubon Bank, Taiwan Life, Fubon Life, HSBC, Crédit Agricole Bank, Auspreci Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank MUFG Bank and Deutsche Bank. A high proportion of the funds in this joint loan case will be provided by local financial institutions. At the same time, Hai Long has obtained the highest credit guarantee ratio from Taiwan's history, provided by seven export credit agencies, including Export Development Canada (EDC), Japan Bank for International Cooperation (JBIC), Japan Trade Insurance (NEXI) and UK Export Finance Agency.

https://renews.biz/88858/hailong-clinches-3bn-in-financing/


India's Reliance Jio Secures $2 Bn In Largest FY24 Offshore Loan with Finnvera backing

(Business World, Delhi, 3 October 2023) Reliance Jio, Indian telecom giant, has successfully raised nearly USD 2 billion (approximately Rs 16,640 crore), marking India's largest offshore loan in FY24, as reported by a media house. HSBC played a leading role in arranging this initiative, which is intended to finance the recent purchases of 5G network equipment from Nokia, a Finnish technology company. The report also reveals that Finnish export credit agency Finnvera has provided a similar insurance cover to safeguard Nokia, the supplier of Jio's 5G equipment and the global lenders associated with the telecommunications company. The inclusion of Finnvera insurance is expected to reduce Jio's overall funding costs for its 5G equipment. Such arrangements offer greater reassurance to global lenders and major 5G network suppliers involved in substantial deals.

https://www.businessworld.in/article/Reliance-Jio-Secures-2-Bn-In-Largest-FY24-O...


SACE Meets India: Facilitating $1.6 Billion for Green Transitions

(Livemint, Mumbai, 17 October 2023) Italy’s Export Credit Agency, SACE, brought together a hundred leaders in Mumbai to explore trade and industrial synergies. SACE is currently evaluating $1.6 billion of new projects to facilitate the green transition in India. These projects are expected to promote and grow trade and industrial synergies between Italy and India in a diversified range of sectors including green technologies & renewable energy, infrastructure, automotive, and steel amongst others. In this scenario, SACE brought together a hundred leaders from the Indian and Italian business and finance communities in Mumbai for its event, “Italy meets India - A Push towards a Sustainable Future", to explore new potential business opportunities between Italy and India. SACE has an overall transaction portfolio of $173 billion and a presence in India through its office in Mumbai since 2012,

https://www.livemint.com/brand-stories/sace-meets-india-facilitating-1-6-billion...


Germany offers cheaper export credit support in new climate policy

(Global Trade Review, London, 25 October 2023) Germany has become the latest country to offer more attractive export credit guarantee pricing and conditions for climate-friendly transactions. In a policy scheduled to take effect from November 1, applicants for export credit support from the energy, transport and heavy industry sectors will be graded based on the alignment of their transactions to the Paris Agreement target of keeping global warming under 1.5 degrees Celsius. Export credit guarantees, investment guarantees and untied loans will be cheaper for transactions that support the 1.5 degrees goal. The down payment on local costs will also be waived, government coverage will be boosted from 95% to 98%, and German content will only need to form 30% of the overall transaction. Additionally, a surcharge on local currencies will be removed, meaning the premium paid will remain the same regardless of the currency used. Current pricing and terms will apply to transactions classified as compliant with the global warming limitation target. Those that are not aligned will be refused cover. Overall, the policy aims to make German export credit cover with developed countries climate-neutral by 2045 and with developing countries by 2050. Euler Hermes administers the export credit policy, overseen by Berlin’s climate and economy ministry.

https://www.gtreview.com/news/europe/germany-offers-cheaper-export-credit-suppor...


ECAs and the airline industry’s financial landscape

(IATA, London, 26 October 2023) Airline finances were a major focus at the World Financial and World Passenger Symposiums. Airlines generally raised more money than they needed during the pandemic and so have good liquidity on the whole, but it is estimated that the industry will need to invest about $5 trillion or some $175 billion per year to achieve its goal of net zero carbon emissions by 2050. Yet the 2023 profit for airlines will be just $10 billion and that is following three years of heavy losses. Clearly, aviation will need to access finance to support its sustainability initiatives. Increasing demand and sustainability mean that money is being spent and airlines are reluctant to raise more capital at the moment because of the high interest rates. Airlines will therefore soon start to access finance again. It is expected that in the United States bond issuing markets will be the most active element. In China and Asia-Pacific, local banks will, as usual, be the main sources for financing while other areas will look more at sale and leaseback as well as export credit agencies.

https://airlines.iata.org/2023/10/26/navigating-industrys-financial-landscape


Afri-Exim, ICRC approve $1.2bn for moribund Burutu port

(Vanguard, Lagos, 4 October 2023) THE African Import Export Bank, Afri-Exim Bank, in collaboration with the Infrastructural Concession Regulatory Commission, ICRC, have approved a $1.2 billion loan facility to rehabilitate the moribund Burutu Port in Burutu, Delta State, Nigeria. An official of Afri-Exim Bank,  Mr. Hope Nyongo, disclosed that the Business Case for Burutu Port has been prepared by the ICRC and encouraged investors with similar projects to take advantage of Joint Project Preparation Facility to develop such facilities. He stated: “Because of the typical nature of the maritime and the lack of internal capacity, we have a facility called the Joint Project Preparation Facility initiated by Afri-Exim for port related development in Africa.

https://www.vanguardngr.com/2023/10/afri-exim-icrc-approve-1-2bn-for-moribund-bu...


Egypt in talks to secure $2.1 bln loan for 2nd high-speed rail line

(Zawya, Dubai, 11 October 2023) The Egyptian government is currently negotiating with several international financing institutions to secure a $2.1 billion concessional loan for the implementation of the second high-speed rail line, two government officials told Asharq Business. The potential lenders include, the Italian Export Credit Agency and the German state-owned KfW Bank, one source noted. On a related note, five international firms are competing for a deal on supplying 21 trains for the first phase of Alexandria metro project at an estimated cost of up to $400 million, the sources said. The companies are the French Alstom, South Korea’s Hyundai, Spanish CAF, China’s CRRC, and Russian-based Transmashholding.

https://www.zawya.com/en/economy/north-africa/egypt-in-talks-to-secure-21bln-loa...


London Hosts West and Central Africa Trade Forum

(Mirage News, London, 17 October 2023) Delegations from seven African nations joined leading UK companies and investors to advance partnerships that promote economic growth and jobs. Organised by UK Export Finance (UKEF) - the UK's export credit agency - and DMA Invest, the Forum brings together prominent representatives from Benin, Cameroon, Cote d'Ivoire, the Democratic Republic of Congo, Guinea, Senegal and Togo to discuss new trade and investment opportunities with their UK counterparts that will benefit British businesses. It forms part of the Prime Minister's priority to grow the economy.

https://www.miragenews.com/london-hosts-west-and-central-africa-trade-forum-1105...


Citigroup: The future of export agency finance

(Global Trade Review, London, 24 October 2023) [In an article sponsored by CITI, GTR has published an overview of export finance by Richard Hodder, head of export agency finance at CITI.] "In today’s world of escalating environmental concerns and shifting global economic priorities, export credit agencies have the potential to play a pivotal role in advancing the transition to cleaner energy sources and sustainable development... “In terms of the energy transition, the sheer volume of financing that will be required to drive it, as well as the large size of individual projects, will necessitate a diversity of funding sources – and ECA support will be key,” says Hodder. “Looking at the enquiries across our network, we expect ECA demand to grow and remain at sustained high levels over the next decade.” [Citigroup Inc. hired HSBC Holdings Plc’s Richard Hodder in June 2023 to lead its export agency finance business as the Wall Street giant seeks to expand its trade operations.]

https://www.gtreview.com/magazine/the-export-finance-issue-2023/the-future-of-ex...


Over 250 organizations back groundbreaking efforts by OECD countries to end $41 billion a year in fossil fuel finance

(Price of Oil, Washington, 30 October 2023) As Organisation for Economic Co-operation and Development (OECD) delegates prepare to meet in Paris from November 6-10, over 250 civil society organizations (CSOs) from 30 countries published an open letter calling on negotiators to support an end to OECD export finance for fossil fuels. Signatories include Amnesty International, Greenpeace International, and Friends of the Earth International. The Financial Times (FT) has revealed that the UK and the EU will put forward proposals for doing so, with Canada planning to back the UK’s proposal. These efforts can end the USD 41 billion per year flowing to fossil fuel projects from government-run OECD export credit agencies (ECAs). The OECD Arrangement on Officially Supported Export Credits sets rules that all OECD country ECAs must follow.

https://priceofoil.org/2023/10/30/over-250-organizations-back-groundbreaking-eff...


What's New for September 2023

"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.

  • Rich country ECAs sink billions into oil and gas despite Cop26 pledge
  • ECA Market Booming Worldwide
  • Export Finance for Future (E3F) and accountability
  • Trade Credit Insurance Market Report by Development Factors 2031
  • UK, Japanese and Italian ECAs support projects in Africa
  • Uganda in talks with Chinese ECA for pipeline funds after Western banks cave in
  • FSD Africa Investments Pledges $19.5 Million to Fortify Africa’s Climate Resilience
  • UAE pledges $4.5bn for Africa clean energy projects
  • USEXIM to Invest $5 Billion in Space Industry
  • Ukraine’s ECA-backed exports hit record high
  • US Exim approves first domestic manufacturing deal
  • Could ECAs finance cleaner steel & industrial hubs?
  • Hungary Exim wins World Bank support for ING loan
  • Canada restricts subsidies, but delays plan to end billions more in ECA fossil fuel finance

Rich country ECAs sink billions into oil and gas despite Cop26 pledge

(Climate Change News, Broadstairs UK, 7 September 2023) The US, Germany and Italy have been accused of backsliding on a Glasgow promise to end public subsidies to fossil fuel projects overseas. They are among rich countries providing billions of dollars of public subsidies to fossil fuel projects abroad this year despite promises to end this support. Export credit and development agencies from six developed nations have approved $4.4 billion in funding for oil and gas projects overseas since the start of 2023, research from campaigning group Oil Change International shows. More than half of the total financing has been provided by the United States ($1.5 billion) and Italy ($1.2 billion), followed by Germany, Japan, the Netherlands and Switzerland. Common Dreams notes that: "The U.S., Italy, and Germany are going rogue by backtracking on their commitment to end international public finance for fossil fuels," said one analyst. "There needs to be accountability."

https://www.climatechangenews.com/2023/09/07/rich-countries-sink-billions-into-o...


ECA Market Booming Worldwide

(openPR, 7 September 2023) The latest study published by HTF MI Research on the "Import Export Insurance Market'' evaluates market size, trend and forecast to 2029. Some of the Major Companies covered in this Research are Atradius (Netherlands), Euler Hermes/Allianz Trade (France), Coface (France), Zurich Insurance Group (Switzerland), Chubb Limited (Switzerland), Allianz SE (Germany), Liberty Mutual Insurance (United States), Tokio Marine Holdings (Japan), AXA XL (France), QBE Insurance Group (Australia), Sompo Holdings (Japan), AIG (American International Group) (United States). According to HTF Market Intelligence, the Global Import Export Insurance market [is] to witness a CAGR (compound annual growth rate) of 8.4%, an increase by USD 7.94 Bn, during the forecast period of 2023-2028. Global Import Export Insurance Market Breakdown by Application (Manufacturing, Agriculture, Energy, Retail, Others) by Type (Export Credit Insurance, Marine Insurance, Political Risk Insurance, International Product Liability, Others) by Organization Size (Large Enterprise, Small and Medium Enterprise (SMEs)) and by Geography (North America, South America, Europe, Asia Pacific, MEA).

https://www.openpr.com/news/3200455/import-export-insurance-market-is-booming-wo...


Export Finance for Future (E3F) and accountability

(LinkedIn, Sunnyvale CA, Unknown date) An international coalition working to harness public export finance as a key driver in the fight against climate change. [ECA Watch note: Unfortunately E3F uses the LinkedIN professional network which relies on professional contacts, does not display dates for postings, and uses a format which is much less public than web page or Facebook networks, thus much less open to public information sharing and accountability.] E3F was launched by 7 European countries at ministerial level in April 2021 to align public export finance with climate goals. More specifically, the coalition aims to increase support for sustainable and climate-friendly projects and accelerate the progressive phasing out of fossil fuel related projects. With this, the coalition members, currently composed of the governments of Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Spain, Sweden and the United Kingdom, reaffirm their commitment to contribute to the climate goals of the Paris Agreement and to promote consistent international standards and pursue ambitious multilateral action. All current members are also signatories to the COP26 statement on international public support for the clean energy transition. From the E3F LinkedIn page: "Denmark is pleased to announce that Denmark will take over the chairpersonship of the Export Finance for Future (E3F) Coalition for the coming year. The coalition warmly thanks Germany for their efforts and for successfully steering E3F through the last year, maintaining our commitments and ambition through the energy crisis. There is a solid foundation for moving E3F further, and Denmark looks forward to taking up the mantle. The focus for the coming year will be on ensuring the continued credibility and increasing the visibility of the coalition, fostering dialogue with non-members and stakeholders, deepening the coalition and strengthening the coherence with other government initiatives." German NGO World Economy, Ecology & Development (WEED) has urged Denmark within E3F to "push all members to adopt ambitious local stratgies to end export finance for fossil fuels! - where Germany failed during their chairpersonship!"

https://www.linkedin.com/company/export-finance-for-future-e3f/


Trade Credit Insurance Market Report by Development Factors 2031

(Benzinga, Detroit, 11 September 2023) The Trade Credit Insurance Market Insights of 2023 is an extensive and comprehensive report that provides a complete analysis of the market's size, shares, revenues, various segments, drivers, trends, growth, and development. The Trade Credit Insurance market is expected to grow annually by (CAGR 2023 - 2031). The Trade Credit Insurance market report is a striking 131 pages that includes a comprehensive table of contents, a list of figures, tables, and charts, as well as extensive analysis. This report offers valuable insights to industry stakeholders and vendors. The report highlights company profiles, financial metrics, market demands, technological innovations, and regional developments. [A single user license costs US$4000.]

https://www.benzinga.com/pressreleases/23/09/34464120/trade-credit-insurance-mar...


UK, Japanese and Italian ECAs support projects in Africa

Zawya, Dubai, 7 September 2023) The UK and Japanese export credit agencies (ECAs) have signed a memorandum of understanding (MoU) to support their future collaboration on sustainable projects worldwide, especially in Africa. The terms of the agreement will guide the UK Export Finance (UKEF) and Nippon Export and Investment Insurance (NEXI) to collaborate on projects around the world – especially in Africa and the Indo-Pacific – which draw on UK and Japanese supply chains, the UKEF said in a statement. With a focus on export credit policy and co-investment projects, the partnership between the two ECAs will support the international competitiveness of UK and Japanese businesses as they seek to access global trading opportunities, the statement added. In other news, The director of Mozambique NGO Justiça Ambiental has charged that "rich countries are addicted to fossil fuels" and emphasized the importance of fighting against oil and gas projects, noting that "If there isn't a strong backlash, the rest of the world will follow soon and then there will be no chance for vulnerable countries like Mozambique to deal with the ravages of the climate crisis... Instead of supporting Mozambique to develop clean and just energy sources, these countries are pushing Mozambique down a fossil fuel development pathway." The director took aim at Italian export credit finance agency SACE for its involvement in "the gas rush in northern Mozambique, which has led to human rights abuses, devastated lives, increased conflict and militarization, and oppression of communities, journalists, and civil society."

https://www.zawya.com/en/projects/utilities/uk-and-japanese-export-credit-agenci...


Uganda in talks with Chinese ECA for pipeline funds after Western banks cave in

(Reuters, Kampala, 25 September 2023) Uganda is in advanced talks with Chinese export credit agency SINOSURE to provide credit for its crude oil pipeline after pressure from environmentalists forced some Western banks to recoil from the project, a top official said on Monday. The 1,445-kilometre (898-mile) East African Crude Oil Pipeline (EACOP) is planned to help Uganda export its crude from oilfields in the country's west via a port on Tanzania's Indian Ocean coast. It is co-owned by the government of Uganda, France's TotalEnergies (TTEF.PA), China's CNOOC (0883.HK) and Tanzania's Tanzania Petroleum Development Corporation (TPDC). The project will cost $5 billion, including the cost of credit and 40% of the money will be raised through debt while the rest will come from equity. Activists contend that the project violates the Equator Principles, a set of standards adopted by these specific lenders for assessing, determining, and managing social and environmental risk for project finance. In addition to Kampala, London, Paris, and New York, the Eacop demonstrations also took place in 18 other cities, including Tokyo, Johannesburg, Frankfurt, Brussels, Sendai, Hoima, Nagoya, Toronto, Fukuoka, Goma, Cape Town, Amsterdam, Copenhagen, and Vancouver.

https://www.reuters.com/markets/commodities/uganda-talks-with-chinese-credit-age...


FSD Africa Investments Pledges $19.5 Million to Fortify Africa’s Climate Resilience

(Techinafrica, South Africa, 8? September 2023) [A somewhat confused article apparently about an investment in un-named Latin American ride sharing services by an African investment fund backed by un-named ECAs.] "To enhance mobility and environmental sustainability in Latin America, FSD Africa Investments (FSDAi) [a UK International Development funded regional programme operating in more than 30 countries from its Kenya base] has forged a significant alliance with the [South African] ride-hailing service [app] InDrive." [An Uber cum taxi competitor now operating in 6 other African countries]. FSDAi’s investments in Acre Impact Capital’s Export Finance Fund I, the Catalyst Fund, and Camco’s Spark Energy Services underscore the institution’s commitment to collaborating with local investment managers and venture capitalists. The goal is to champion environmentally-conscious enterprises that might otherwise face challenges securing the necessary capital. [Support for privately owned automobile services is environmentally conscious?]

https://www.techinafrica.com/fsd-africa-investments-pledges-19-5-million-to-fort...


UAE pledges $4.5bn for Africa clean energy projects

(Argus Media, Nairobi, 5 September 2023) The UAE will provide $4.5bn in finance to accelerate the development of clean energy projects in Africa, UN climate summit Cop 28 president-designate Sultan al-Jaber said today at the Africa Climate Summit in Nairobi. Abu Dhabi's state-owned renewables firm Masdar, Abu Dhabi Fund for Development, Etihad Credit Insurance, the country's export credit agency and Amea Power — a Dubai-based renewable-energy company — will provide the funds, al-Jaber said. Africa development bank's Africa50 investment platform will act as a strategic partner to help identify initial projects. The pledge aims to "catalyse at least an additional $12.5bn from multilateral, public and private sources," al-Jaber said. "This initiative will target countries with clear transition plans, robust regulatory frameworks and a real commitment to putting the necessary grid infrastructure in place," he added. Africa's annual climate finance needs amount to $250bn, according to the African Development Bank, but the continent only receives 12pc of the total, and less than 2pc is going to adaptation, according to al-Jaber.

https://www.argusmedia.com/en//news/2486005-uae-pledges-45bn-for-africa-clean-en...


USEXIM to Invest $5 Billion in Space Industry

(CNBC, Paris, 11 September 2023) The U.S. export credit agency is working through a $5 billion pipeline of applications related to the space industry, as companies look to fund projects in orbit in a tighter capital market. The Export-Import Bank of the United States, or EXIM, is no stranger to financing space projects such as satellite and rocket products. EXIM generally sees more applications during tougher economic times, as the previous bulk of its financing for the space sector came between 2010 and 2015. “In our pipeline related to this industry, about $1.3 billion are likely to come to fruition within a year and another $4 billion that we’re looking at are a little less further along,” Judith Pryor, EXIM’s first vice president and vice chair of the board of directors, said on Monday at the 2023 World Satellite Business Week conference.

https://www.cnbc.com/2023/09/11/us-export-import-bank-working-through-5-billion-...


Ukraine’s ECA-backed exports hit record high

(Global Trade Review, London, 30 August 2023) The export credit agency (ECA) of Ukraine insured loans for exports worth more than Hrn1bn (US$27.1mn) for the first time last month, as the agency continues to increase the scale of its support for trade from the war-torn country. The Ukrainian ECA was founded in 2018, began operations in 2022 and in 2021 covered Hrn12.5mn in financing for exporters. A total of 10 exporters were supported across the country. The largest individual loan, for Hrn20mn, was issued in Kyiv. The three banks that have provided the most in loans in 2022/23 are two major Ukrainian banks, Oschadbank and Ukrgasbank, and Vienna-headquartered Raiffeisen Bank. They issued loans of Hrn256.3mn, Hrn229mn and Hrn210mn, respectively, financing exports worth a total of Hrn5.33bn. In July, Russia withdrew from the Black Sea Grain Initiative, an agreement that saw the safe shipment of grain from Ukraine, and so far no new deal has been successfully negotiated. The news also comes weeks after the Ukrainian central bank said it was removing a ban on ECA-backed loan repayments, put in place amid Russia’s invasion of the country. The National Bank of Ukraine had barred the repayment of principal and interest on loans from foreign lenders. Following the invasion, several ECAs suspended coverage for Ukrainian trade, and some claimed the ban on overseas payments was the reason. While several countries, including Canada, the UK and the US, kept their coverage and credit limits for exports to Ukraine, in September 2022 the agency asked ECAs to restore their pre-war coverage limits.

https://www.gtreview.com/news/europe/ukraines-eca-backed-exports-hit-record-high...


US Exim approves first domestic manufacturing deal

(Global Trade Review, London, 5 September 2023) The Export-Import Bank of the United States (US Exim) has approved the first transaction under its domestic manufacturing programme, a direct loan of US$4.7mn to a Pennsylvania-based technology firm. The transaction comes more than a year after US Exim formally launched its Make More in America Initiative (MMIA), which in the time since has made available the agency’s range of medium and long-term loans for the establishment or expansion of US-based manufacturing facilities with an “export nexus”. US Exim had been recommended to explore the possibility of creating such a product a year earlier, following a 100-day White House review of supply chains for critical products, such as minerals and semiconductors.

https://www.gtreview.com/news/americas/us-exim-approves-first-domestic-manufactu...


Could ECAs finance cleaner steel & industrial hubs?

(Clean Technica, Bradenton FL, 15 August 2023) The climate finance community should be watching Sweden. Swedish steelmaker H2 Green Steel (H2GS), founded in 2020 to produce (using renewable hydrogen), is completing a landmark €5 billion+ fundraise for its first plant in Boden, near the Arctic Circle in northern Sweden, an industrial project finance template is taking shape and it’s important: heavy industry produces 30% of global carbon emissions and steelmaking is 7% alone. Export credit agencies may be less nimble than private lenders, due to the government oversight and political constraints they must operate within. But for these first-of-a-kind deals, they are proving to be powerful allies, both as debt guarantors and direct lenders. In the H2GS deal, Swedish ECA Svensk Exportkredit participated in the €3.3 billion senior debt tranche alongside commercial banks. Meanwhile, the core ECA, Allianz-owned Euler Hermes, committed to guaranteeing €1.5 billion of the senior debt.

https://cleantechnica.com/2023/08/15/5-lessons-for-industrial-project-finance-fr...


Hungary Exim wins World Bank support for ING loan

(Global Trade Review, London, 13 September 2023) The Hungarian Export-Import Bank (Hungary Exim) will boost sustainable lending after securing a €300mn loan extended by investment bank ING and covered by the investment insurance arm of the World Bank. The World Bank’s Multilateral Investment Guarantee Agency (Miga) issued €386mn in guarantees to ING, covering the Dutch lender’s principal, interest and other financing costs on the debt. Hungary Exim says it will use the credit line to launch new green financing products and primarily to support SMEs, although some “larger” sustainable projects may also benefit.

https://www.gtreview.com/news/europe/hungary-exim-wins-world-bank-support-for-in...


Canada restricts subsidies, but delays plan to end billions more in ECA fossil fuel finance

(Above Ground, Ottawa, 4 August 2023) Ottawa has taken a major step forward towards ending another significant component of its fossil fuel support. It announced last week a policy that makes Canada the first G20 country to publish a plan for delivering on the group’s 2009 commitment to phase out so-called “inefficient” subsidies to the fossil fuel sector. Under the new policy, federal support identified as a fossil fuel subsidy can no longer be provided unless it fulfills one of six criteria. Unfortunately, these criteria provide for significant exemptions that may allow fossil fuel companies peddling false climate solutions to benefit from billions of dollars a year in tax breaks and public spending. For example, Ottawa will still provide subsidies that facilitate “abated production processes” – language often used by oil companies to describe their use of carbon capture technology to reduce emissions from their own operations. This ignores the much larger quantity released when the fuels they produce are burned. Perhaps most significantly, the new policy leaves intact public financing from Export Development Canada (EDC), which Ottawa – contentiously – doesn’t consider a subsidy. Last year alone, EDC provided roughly $20 billion in financing to oil and gas companies, mostly in the form of loans, guarantees and insurance. This represents the overwhelming bulk of Canada’s financial support for the sector. Ottawa has pledged to “develop a plan” to phase out this financing as well. As of January the government has, under its Glasgow policy, barred EDC from providing new, direct financing for most oil and gas activities abroad. Yet this doesn’t touch the majority of EDC’s fossil fuel finance, which supports the industry’s operations in Canada.

https://aboveground.ngo/canada-restricts-subsidies-but-delays-plan-to-end-all-fo...


Pages