Welcome to ECA Watch

Export credit agences provide government-backed loans, guarantees and insurance to corporations working internationally in some of the most volatile, controversial and damaging industries on the planet.

Shrouded in mystery, ECAs provide financial backing for risky projects that might never otherwise get off the ground. They are a major source of national debt in developing countries.

ECA Watch is a network of NGOs from around the world. We come together to campaign for ECA reform - better transparency, accountability, and respect for environmental standards and human rights.

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What's New for July 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?

Civil societies say Germany's plan for export credit guarantees violates climate commitments

(Reuters, Berlin, 25 July 2023) Environmental groups on Tuesday criticized Germany's draft policy on export credit guarantees as too vague and soft on financing for natural gas projects, as Berlin attempts a balancing act between climate protection and energy security. Germany supports exports by offering guarantees for non-payment caused by economic and political factors, helping companies to secure political backing for their projects and better financing terms. On Monday, the economy ministry published its first draft guidelines for such guarantees for the energy, transport and industry sectors, tying them to climate protection targets. The guidelines set three categories for future projects: a positive green for projects contributing to achieving climate targets that would be eligible for government support, a neutral white for projects that do not make a significant contribution to climate goals but would still receive support, and a climate-damaging red to be excluded from such guarantees. But the draft drew heavy criticism from environmental organizations, which argued that Germany was breaking its international commitment to ending public financing for fossil fuels by the end of 2022, by offering too many exemptions for natural gas projects. "These plans highlight the German governments' shameless disrespect of its international commitments and climate goals," Martin Kaiser, executive director of Greenpeace Germany, said. At the 2021 United Nations COP26 climate summit, 20 countries, including Germany, promised to stop public funding for overseas fossil fuel projects by the end of 2022. Environmental groups have raised concerns about Germany’s policy draft on export credit guarantees, stating that it is too vague and lenient regarding the financing of natural gas projects.

https://www.reuters.com/business/environment/germanys-plan-credit-guarantees-vio...


Biden breaks climate pledge again with new EXIM LNG approval

(Price of Oil, Washington, 18 July 2023) Last  Friday, the Export-Import Bank of the United States (EXIM) — the official export credit agency of the U.S.— insured USD 400 million in revolving credit facilities for global commodities trader Trafigura. The newly approved transaction will allow Trafigura Pte. to purchase liquefied natural gas (LNG) from U.S. exporters to sell primarily to European buyers. “It is alarming that Biden continues to break climate commitments to end international public finance for fossil fuels. Instead, he uses public money to prop up the dirty industry that fuels climate disaster and harms communities, while we suffer record breaking extreme heat. “Other countries like Canada, the UK, and France have kept their promise to end international public finance for fossil fuels, and are already shifting billions of dollars towards clean energy. There needs to be accountability for signatories like the Biden administration for going back on their word.”

https://priceofoil.org/2023/07/18/biden-breaks-climate-pledge-again-with-new-exi...


Italy’s SACE breaks climate promise with $500 million guarantee for Peru oil refinery

(Price of Oil, Washington, 11 July 2023) Italy’s export credit agency SACE has approved a $500 million guarantee in loans for the Talara oil refinery in Peru, once again breaking their commitment to end their international public finance for fossil fuels by the end of 2022. SACE is the biggest public financier of fossil fuels in Europe. Between 2016 and 2021, SACE supported EUR 13.7 billion in fossil fuels. A study by Oil Change International last year revealed that SACE is considering financing for international fossil fuel projects with emissions equivalent to more than 3 times Italy’s entire annual emissions. At the UN COP26 climate summit in 2021, 39 countries and financial institutions, including Italy, signed the Glasgow Statement, committing signatories to end their direct international public financing for fossil fuels by the end of 2022. Oil Change International’s Public Finance for Energy Database shows that G20 countries and the major multilateral development banks (MDBs) provided at least USD 63 billion per year in international public finance for oil, gas, and coal projects between 2018 and 2020. This is 2.5 more than their support for renewable energy.

https://priceofoil.org/2023/07/11/italys-sace-breaks-climate-promise-with-500-mi...


Who are the major financiers of Brazilian FPSOs?

(BN Americas, Santiago, 7 July 2023) Although the energy transition and ESG issues are gaining traction, many banks and credit export entities keep financing oil and gas undertakings, such as floating production storage and offloading units (FPSOs) ordered by Brazil’s federal oil firm Petrobras. FPSOs are used for the production and processing of hydrocarbons, and for the storage of oil. This situation will not change much as demand for hydrocarbons will remain and a significant portion of oil companies’ decarbonization capital expenses comes from oil and gas revenues. Furthermore, the geopolitical context, with the war in Ukraine and gas supply in Europe, has reignited energy security concerns. Meanwhile, financial products like green and sustainability linked bonds, developed to support companies that do not operate in totally green areas, do not yield higher returns. According to Daniela Davila, a partner at Vieira Rezende law firm, new FPSOs are mainly financed by Asian financial institutions (banks and leasing houses) and export credit agencies from countries such as China, Japan, South Korea and Singapore, where shipyards that build the hulls/modules of the units are located. Some banks, such as BNP Paribas and HSBC, have announced their exit from this industry, while New York-based Nordea has shown less appetite for oil and gas. On the other hand, traditional offshore players like Norway’s DNB or Germany’s Deutsche Bank continue to support the sector. CNOOC and CNODC are also Petrobras’ partners in the Mero field, which will receive the Sepetiba unit this year and Alexandre de Gusmão in 2025. Banks from Japan, like Sumitomo Mitsui Banking Corporation and Japan Bank for International Corporation, often work with Japan's Modec, which signed several charter contracts of FPSOs under construction with Petrobras and one for Equinor’s Bacalhau field. Among other financial institutions with tradition in FPSO financing are the UK’s Standard Chartered Bank; DBS Bank, United Overseas Bank, Clifford Capital and Oversea-Chinese Banking Corporation from Singapore; China Investment Corporation; Korea Development Bank (South Korea); Maybank and CIMB (Malaysia); Société Générale and Natixis (France); and Mitsubishi UFJ Financial Group (Japan). Export credit agencies in the sector include China’s Sinosure, Nippon Export and Investment Insurance (Japan) and Sace (Italy).

https://www.bnamericas.com/en/features/who-are-the-major-financiers-of-brazilian...


Coal-project financing outside of China hits 12-year low

(Resiliance, US-UK-AU, 11 July 2023) The global energy crisis fueled by Russia’s invasion of Ukraine sparked widespread fears of a “return to coal” – yet, to date, there is scant evidence of this. Indeed, in the world of project financing, any supposed rebound has been illusory. The financing of coal power outside of China has now hit its lowest point since 2010, according to our latest figures in the Global Coal Project Finance Tracker (GCPFT). We found that for every $1 in coal project lending that reached financial close in 2022, another $14 earmarked for previously proposed projects was stopped. But, despite a myriad of economic, political and social headwinds that have slowed funding to the coal sector, project lending continues to display resilience, particularly in southeast Asia.

https://www.resilience.org/stories/2023-07-11/coal-project-financing-outside-of-...


AFRICAN NGOS URGE END OF SUPPORT FOR FOSSIL FUEL PROJECTS IN AFRICA AND SIGN THE GLASGOW STATEMENT

(Environment Governance Institue, Seeta Uganda, 18 June 2023) Thirty four African environmental and human rights civil society organisations and 13 international supporters wrote the African Export-Import Bank (Afreximbank) in anticipation of the 30th Afreximbank Annual General Meeting (AGM) from 18th to 21st June 2023 to urge stronger environmental commitments and actions within the financial sector, noting that the impacts of climate change are increasingly evident across the continent, with vulnerable communities and ecosystems bearing the brunt of these effects, and yet financial institutions such as Afreximbank have continued to invest in the further expansion of fossil fuel projects, thus accelerating the climate emergency. Specifically, they note with great concern that across the region, Afreximbank has continued to support a list of finance fossil fuel projects, which contravenes Article 2.1(c) of the Paris agreement signed by all 54 African countries which calls on parties to make finance flows consistent with a pathway towards low greenhouse gas (GHG) emissions and climate-resilient developments.

https://egiuganda.org/wp-content/uploads/2023/06/African-CSOs-Memo-to-Afriexim-B...


Guarantees for 1st Batch of Korea’s Arms Exports to Poland limit 2nd batch due to 40% limit on equity capital

(Business Korea, Seoul, 4 July 2023) According to the Export-Import Bank of Korea’s loan and guarantee data by item and country on July 3, the state-run bank provided 488.2 billion won (US$375.7 million) in financial support in the form of loans and guarantees to the defense sector in the first five months of this year. The total amount of loans and guarantees provided by Korea Eximbank to all industries in the same period was 31.8 trillion won. Export finance for Korea’s defense exports accounted for 1.6 percent of the total export finance provided by Korea Eximbank this year. According to the Enforcement Decree of the Export-Import Bank of Korea Act, the state-run lender cannot provide credit to the same borrower for more than 40 percent of its equity capital. Korea Eximbank will thus be unable to afford to give additional loans and guarantees to Poland if it provides US$5 billion in support for the first batch. The amount of loans and guarantees provided by Korea Eximbank in connection with purchases of weapons signed from 2018 to 2021 ranged from 100 to 500 billion won per year. But the figure surged to the two trillion won range in 2022. Guarantees with Poland accounted for most of the financial support, in the US$2 trillion range. In addition to Poland, Korea Eximbank provided defense-related financial support to the United Arab Emirates (UAE), Egypt, and Indonesia in 2022.

http://www.businesskorea.co.kr/news/articleView.html?idxno=117705


OECD amends export credit agency arrangement to boost green trade

(Institue of Export & Int'l Trade, london, 20 July 2023) The Organisation for Economic Co-operation and Development (OECD) has modernised the terms of its Arrangement on Officially Supported Export Credits to allow export credit agencies (ECAs) covered by the arrangement, which includes UKEF in the UK, to extend more generous incentives for climate-friendly transactions. The OECD describes the Arrangement as a “gentlemen’s agreement” between participants, which include Australia, Canada, the EU, Japan, Korea, New Zealand, Norway, Switzerland, Turkey, the UK and the US. Under the new rules, UKEF will now be allowed to offer better or longer repayment terms and more flexible finance structures for more renewable and green transactions. The new OECD arrangement follows a proposal from EU countries to do more to encourage green trade and climate-friendly transactions. It includes an expansion of the scope of green or climate-friendly projects eligible for longer repayment terms (eligible under the “Climate Change Sector Understanding” or CCSU). These include projects related to environmentally sustainable energy production; CO2 capture, storage, and transportation; transmission, distribution and storage of energy; clean hydrogen and ammonia; low emissions manufacturing; zero and low-emission transport; and clean energy minerals and ores.

https://www.export.org.uk/news/646406/OECD-modernises-export-credit-agency-arran...


Korea Eximbank prepares ECA Version 2.0 to boost exports

(Pulse News, Soeul, 24 July 2023) The Export-Import Bank of Korea (Korea Eximbank) is gearing up to upgrade its traditional model of financial support for promoting exports of Korean companies to a new level with the introduction of Export Credit Agency (ECA) Version 2.0. The  management strategy, termed ‘Beyond Core,’ aims to move beyond the core responsibility of supporting export expansion and evolve the ECA to adapt to the changing landscape. As part of this strategy, Korea Eximbank is considering activating limited investment operations. Similar to Japan Bank for International Cooperation (JBIC) and Export Development Canada (EDC), which have set up investment-specific subsidiaries for development finance in developing countries

https://pulsenews.co.kr/view.php?year=2023&no=562866


Piyush Goyal meets bankers on export credit to MSME exporters aiming to achieve $1 trillion merchandise exports

(India Times, New Delhi, 30 June 2023) Minister of Commerce and Industry Piyush Goyal on Wednesday urged Indian banks to provide MSMEs with improved and inexpensive loans in order to meet the aim of 1 trillion dollars in product exports. According to the official statement, the meeting was convened by the Department of Commerce in coordination with Export Credit Guarantee Corporation Limited, (ECGC) in New Delhi. The Commerce and Industry Minister also mentioned at the meeting that the ECGC might look into expanding the programme that was proposed for nine banks to all banks in order to improve the export credit offtake for MSME Exporters. The Commerce and Industry Minister further informed that in the next four months, all the ECGC services would be digitised so that physical interaction can be minimised, it added.

https://economictimes.indiatimes.com/small-biz/trade/exports/insights/piyush-goy...


£3.5bn UKEF support given to UK manufacturing, £1.1bn to construction in 2022/23

(PES Media, Rochester, 5 July 2023) UK Export Finance (UKEF) has published its annual results for 2022-23, which show the government’s export credit agency provided £3.5bn in new, direct support for UK manufacturing exporters in the last 12 months. The financing has directly supported up to 34,000 jobs in the sector. Overall, UKEF provided £6.5bn in new direct support to UK exporters in 2022-23. The financing, provided through loans, guarantees and insurance policies. UKEF spent £1.1bn supposedly supporting the UK construction sector last year.

https://www.pesmedia.com/35bn-support-given-to-uk-manufacturing-industry-by-ukef


Cedar Rose reaffirms its longstanding partnership with Sinosure

(ZAWYA, Dubai, 11 July 2023) Cedar Rose, a Cyprus and Dubai based corporate data, credit, risk and compliance firm, has reaffirmed its longstanding partnership covering over 25 years of relationship with Sinosure, a prominent Chinese state-owned enterprise responsible for export credit insurance. Cedar Rose's services play a crucial role in enabling comprehensive risk assessments for Sinosure. By leveraging Cedar Rose's Company Credit Reports and analysis services, Sinosure gains access to a wealth of data, including company identification, structure, and financial information. These services are obtained through Cedar Rose's API, with a particular focus on the Middle East and North Africa (MENA) region. Antoun Massaad, Co-Founder and CEO of Cedar Rose stressed that “The partnership between Cedar Rose and Sinosure has proven valuable in de-risking trading activities, supporting Sinosure’s risk management practices”.

https://www.zawya.com/en/press-release/companies-news/cedar-rose-reaffirms-its-l...


India's ECGC may permit Sri Lanka to repay debt over 12 years

(MINT, New Delhi, 6 July 2023) India plans to allow Sri Lanka up to 12 years to repay its debt to help ease the financial burden on the island-nation, India’s Export Credit Guarantee Corporation (ECGC) Ltd’s chairman-cum-managing director M.Senthilnathan said. Sri Lanka, facing its worst economic and political crisis in over seven decades, owes $7.1 billion to bilateral creditors— $3 billion owed to China, $2.4 billion to the Paris Club and $1.6 billion to India. Senthilnathan added that the National Export Insurance Account, managed by the ECGC, has received close to ₹4,500 crore worth of claims from exporters facing default in countries such as Sri Lanka, Zambia, Suriname and Ghana which faced extreme economic hardships after covid-19 and the Ukraine war. China has so far not joined the common platform of negotiators on Sri Lanka’s debt restructuring, though it has joined as an observer. In response to Sri Lanka’s request for long-term relief from major creditors like India, Japan, and China, the Chinese Exim Bank has agreed to grant Sri Lanka a two-year moratorium. It said it would support the country’s efforts to secure a $2.9 billion loan from the International Monetary Fund according to a report by Reuters.

https://www.livemint.com/economy/india-plans-to-extend-repayment-period-for-sri-...


UKEF is not building a multimillion pound railway line in Turkey

(Full Fact, London, 26 July 2023) Earlier this week Greater Manchester mayor Andy Burnham tweeted a screenshot of a UK government press release with the headline “UK announces £680m for new high-speed electric railway in Turkey”. Alongside the screenshot, Mr Burnham tweeted “So we can’t afford to keep our own ticket offices open - but we can afford to build a new line in Turkey?” Mr Burnham’s suggestion that the UK is financing a new railway line in Turkey is misleading—the £680 million figure used in the government press release refers to a loan provided by three banks (J.P. Morgan, ING Bank and BNP Paribas) which has been underwritten by the UK government’s export credit agency. The Italian, Austrian and Swiss export credit agencies are also providing reinsurance.

https://fullfact.org/online/uk-turkey-railway-loan/


‘Wolves’ Clever Opportunism: Securing £99m UKEF Loan’

(G3 Football, Hillside NJ, 14 July 2023) Wolverhampton Wanderers have recently made headlines for securing a £99 million loan from the UK government. While some may view this as a sign of financial trouble, experts argue that it is a shrewd move by the club. In this article, we will explore the details of the loan, why Wolves qualified for it, and its implications for the club. The loan was obtained by Wolves last year from the government agency UK Export Finance (UKEF). UKEF is the UK’s export credit agency and aims to ensure that no viable UK export fails due to lack of finance or insurance. Wolves qualified for the loan because they export a range of goods and services, including merchandise and football through the Premier League’s overseas broadcast rights.

https://g3.football/wolves-clever-opportunism-securing-99m-gov-loan/


What's New for June 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.

  • How Major Economy's ECAs are Breaking their own Climate Change Pledges
  • OECD allows support for fossil-based technologies under agreed ‘climate incentives’
  • Norway's Eksfin accused of ‘climate hypocrisy’ for financing Turkish gas field
  • UK's top court rejects Friends of the Earth’s appeal over government’s funding for Mozambique LNG project
  • Indonesia's Pertamina reaches $3.1 billion ECA and bank financing deal for Balikpapan oil refinery
  • SACE signs agreement with Saneg for methanol-to-olefin gas chemical complex
  • Mercuria closes deals worth over US$5bn including first ECA backing by SACE
  • SBM Offshore completes US$1.615 billion financing of Alexandre de Gusmão offshore Brazil FPSO
  • EU in talks over export credit facility for ECAs, banks
  • Berlin loosens requirements for Ukraine export guarantees
  • Ukraine axes ban on ECA-backed loan repayments
  • Japan’s NEXI acquires stake in African Trade Insurance Agency
  • African sovereign debt poses challenges for ECA activity

How Major Economy's ECAs are Breaking their own Climate Change Pledges

(Byline Times, London, 16 June 2023) OECD countries are continuing to pour tens of billions of pounds into fossil fuel projects, despite their obligations to switch to clean energy sources. Advanced economies are breaking their own climate change obligations by investing massively in fossil fuels rather than switching to clean energy sources, according to a landmark new report. The OECD’s export finance initiatives are in contravention of internationally-determined climate change obligations. In 2021, 39 governments signed the Clean Energy Partnership at the COP26 conference in Glasgow, an agreement which committed to “driving multilateral negotiations in international bodies, in particular in the OECD, to review, update and strengthen their governance frameworks to align with the Paris Agreement goals”. Yet despite 52% of OECD countries having signed the Partnership agreement, fossil gas received 30% of all OECD export finance between 2018 and 2020. The report confirmed that “despite long standing commitments to align financial flows with climate goals, public finance and, in particular, export finance remains skewed in favour of fossil energy”.

https://bylinetimes.com/2023/06/16/how-major-economies-are-breaking-their-own-cl...


OECD allows support for fossil-based technologies under agreed ‘climate incentives’

(Price of Oil, Paris, 23 June 2023) The Organisation for Economic Co-operation and Development (OECD) recently agreed on terms and conditions for climate-friendly export financing as part of its revised Climate Change Sector Understanding (CCSU). While the agreement enables incentives for renewable energy projects like solar and wind, it also provides incentives for hydrogen and ammonia, including fossil gas derived hydrogen, and fossil fuel power plants with carbon capture and storage (CCS). The agreement does nothing to restrict oil and gas financing. The  OECD’s export credit agencies are  the world’s largest international public financiers of fossil fuels. Recent analysis by Oil Change International shows that OECD countries supported fossil fuel exports by an average of $41 billion from 2018 to 2020, almost five times more than their clean energy support ($8.5 billion) over the same period. As such, OECD Export Credit Agencies (ECAs) play a critical role in propping up high-emitting projects, such as LNG infrastructure, which in turn shapes our future global energy system. For example, OECD ECAs have supported 56 percent of new hazardous liquified gas (LNG) export terminal capacity built in the last decade. According to International Energy Agency (IEA) and Intergovernmental Panel on Climate Change (IPCC) scenarios, maintaining a 50% chance to limit global warming to 1.5°C requires an immediate end to investments in new oil, gas, and coal  production and LNG infrastructure. This underlines an urgent need for the OECD to, as called for by over 175+ CSOs, end export support for new fossil fuel projects.

https://priceofoil.org/2023/06/23/oecd-allows-support-for-fossil-based-technolog...


Norway's Eksfin accused of ‘climate hypocrisy’ for financing Turkish gas field

(Enviro News, Lagos, 9 June 2023) The Norwegian government has been accused of climate hypocrisy after it emerged that the government export credit agency, Eksfin, has approved finance for the Sakarya gas field in the Black Sea. The Sakarya gas field project, owned by Turkish Petroleum, a Turkish state-owned enterprise, is considered to contain “the largest gas reserves discovered in the Turkish Exclusive Economic Zone as well as in the Black Sea.” The field is set to continue production “until the field reaches its economic limit in 2057.” Norway has previously been criticised for being the last country in north-west Europe to not sign the Glasgow Statement, an agreement at the COP26 climate conference that commits signatories to end government-backed finance for international fossil fuel projects. Previous analysis of the Sakarya gas field by Oil Change International shows that the project will emit at least 140 million tonnes of carbon dioxide in its first phase. Norway’s annual emissions of 48.9 million tonnes (as of 2022) mean this project will emit nearly three times the annual emissions of the entire country. Campaigners are accusing the Norwegian government of inconsistency and hypocrisy. While Norway is a major donor to aid projects that help developing countries mitigate and adapt to climate change, it is also financing fossil fuel projects that make climate change worse.

https://www.environewsnigeria.com/norway-accused-of-climate-hypocrisy-for-financ...


UK's top court rejects Friends of the Earth’s appeal over government’s funding for Mozambique LNG project

(Upstream Online, London, 23 June 2023) The UK’s top court has thrown out an application by Friends of the Earth (FoE) to appeal a case it lost earlier this year against the government’s funding of TotalEnergies’ $20 billion Mozambique LNG project. FoE had argued in the Court of Appeal in January this year that the UK should not have provided export credit finance to the huge liquefied natural gas project because it went against the government’s climate change policy and failed to adequately take into account Scope 3 emissions from the scheme.

https://www.upstreamonline.com/energy-transition/uks-top-court-rejects-friends-o...


Indonesia's Pertamina reaches $3.1 billion ECA and bank financing deal for Balikpapan oil refinery

(Reuters, Jakarta, 24 June 2023) Indonesia's state energy company Pertamina (PERTM.UL) reached a $3.1 billion financing deal with a number of export credit agencies and commercial banks to fund the upgrade of its Balikpapan refinery, the company said on Saturday. The lenders include export credit agencies from South Korea, Italy and the United States, and 22 commercial banks. Pertamina will use the funds for the expansion of its Balikpapan oil refinery to a capacity of 360,000 barrels per day (bpd), from 260,000 bpd. Pertamina claims it will be able to produce more environmentally friendly fuels. [Oil Change International noted in May that US President Biden has broken a major G7 climate promise by financing this Indonesian oil refinery.]

https://www.reuters.com/business/energy/indonesias-pertamina-reaches-31-bln-fina...


SACE signs agreement with Saneg for methanol-to-olefin gas chemical complex

(Hydrocarbon Engineering, Surrey, 13 June 2023) Italy’s State Export Credit Agency (SACE) has signed a financial memorandum with Uzbekistan’s largest oil company, Saneg, concerning an innovative methanol-to-olefin gas chemical complex (GCC MTO), that is currently under construction in the Bukhara region of Uzbekistan. Masrur Shakirov, General Director of GCC MTO, said: “Italian financial and technical support have been crucial to the development of this facility from the very beginning. The new memorandum confirms Italy’s ongoing commitment to supporting GCC MTO, while providing substantial new credit facilities to Saneg from Italian financial institutions.” This is the second major agreement recently finalised concerning GCC MTO. On 25 May 2023, Gas Chemical Complex MTO Central Asia LLC signed an industrial gas processing agreement with Air Products to build a methanol production facility. Known as Methanol Island, the facility would have capacity of 1.34 million tpy, as part of the GCC MTO complex.

https://www.hydrocarbonengineering.com/petrochemicals/13062023/sace-signs-agreem...


Mercuria closes deals worth over US$5bn including first ECA backing by SACE

(Global Trade Review, London, 28 June 2023) Mercuria has secured over US$5bn in new and renewed financing facilities, including its first funding backed by an export credit agency (ECA). The global commodities trader, which focuses on energy products, metals and minerals, says it has closed three financing arrangements from a range of global banks. Among those is a €500mn (US$546mn) multi-currency facility guaranteed by Italy’s ECA Sace, to supply the country with natural gas and LNG. Mercuria group CFO says the deal is the trader’s first ECA-backed transaction and comes after Italy agreed to support a similar financing deal with Mercuria’s rival Trafigura for the supply of metals to the country. While both are import deals, they were struck under Sace’s Push Strategy, which aims to support Italian suppliers’ access to international markets by targeting large foreign buyers. Natixis, Société Générale, UBS and UniCredit are mandated lead arrangers on the facility while Abu Dhabi Commercial Bank is lead arranger. Mercuria Energy Group Ltd is a Cypriot-domiciled multinational commodity trading company active in a wide spectrum of global energy markets including crude oil and refined petroleum products, natural gas, power, biodiesel, base metals and agricultural products.

https://www.gtreview.com/news/global/mercuria-closes-three-financing-deals-worth...


SBM Offshore completes US$1.615 billion financing of Alexandre de Gusmão offshore Brazil FPSO

(Yahoo Finance, Brazil, 20 June 2023) SBM Offshore is pleased to announce it has signed the project financing of its floating production storage and offloading unit (FPSO) Alexandre de Gusmão for a total of US$1.615 billion. The project financing is provided by a consortium of 12 international banks with insurance cover from 3 international Export Credit Agencies. It will have a processing capacity of 180,000 barrels of oil and 12 million m3 of gas per day. The FPSO construction is progressing as per plan with the expected first oil in the second half of 2024. FPSO Alexandre de Gusmão is owned and operated by special purpose companies owned by affiliated companies of SBM Offshore (55%) and its partners (45%). The FPSO will be deployed at the Mero unitized field located in the Santos Basin approximately 160 kilometers offshore Rio de Janeiro in Brazil, under a 22.5-year lease and operating contract with Petróleo Brasileiro S.A. The Mero unitized field is operated by Petrobras (38.6%), in partnership with Shell Brasil (19.3%), TotalEnergies (19.3%), CNPC (9.65%), CNOOC (9.65%) and Pré-sal Petróleo S.A. – PPSA (3.5%), representing the Government in the non-contracted area. [Despite very extensive press coverage of the project, not one article mentions which 3 ECAs are providing insurance coverage.]

https://finance.yahoo.com/news/sbm-offshore-completes-us-1-165900363.html


EU in talks over export credit facility for ECAs, banks

(Global Trade Review, London, 19 June 2023) The EU is weighing the launch of an export credit facility that could reinsure member state export credit agencies (ECAs) and refinance commercial loans, as it seeks to arrest the relative decline in exports from the bloc to key overseas markets. The European Commission, parliament and member states are now in talks to devise a strategy on export credits following the publication last week of a feasibility study which recommended several steps the EU could take in the next three years. Policymakers are seeking to harness the financial might of ECAs and export-import banks across its 27 countries by aligning them to key EU strategies such as transitioning to green energy, overseas investment and competition with China and the US. The feasibility study, authored by independent consultants and launched by the Commission last year, lamented a 5% drop in the EU’s share of merchandise goods exports to high-risk third countries in the decade to 2020, and double-digit declines in the share of EU contractors in business in Africa, Asia and the Middle East. Exports to third countries prop up some 38 million EU jobs, according to the study. ECAs are widely used by contractors to insure and lower the cost of financing capital-intensive infrastructure projects in what are deemed to be high-risk markets for credit, which include major developing economies such as Turkey, Vietnam, South Africa, Nigeria and Pakistan.

https://www.gtreview.com/news/europe/eu-in-talks-over-export-credit-facility-for...


Berlin loosens requirements for Ukraine export guarantees

(Yahoo Finance, Berlin, 22 June 2023) The German government has loosened its requirements for export credit guarantees for companies doing business with Ukraine in an effort to shore up economic recovery in the country, the economy ministry said Thursday. Effective immediately, the application procedure will no longer require bank guarantees if the risk is justifiable, replacing a stricter case-by-case examination, the ministry said. It added that small- and medium-sized companies stood to benefit from the changes. "The simplified procedures that have now been decided will speed up many things," Economy Minister Robert Habeck said. In 2022, the German government secured goods and services worth 14.9 billion euros ($16 billion) with export credit guarantees. In 2021 - before Russia's full-scale invasion of Ukraine - the figure stood at 20.2 billion euros. Export credit guarantees for business with Russia and Belarus are no longer issued by the German government as a consequence of the war in Ukraine.

https://finance.yahoo.com/news/berlin-loosens-requirements-ukraine-export-090709...


Ukraine axes ban on ECA-backed loan repayments

(Global Trade Review, London, 19 June 2023) Ukraine’s central bank has lifted restrictions on domestic firms’ repayments on loans backed by foreign export credit agencies (ECAs), wagering that the move will help attract much-needed foreign investment and financing for imports. The National Bank of Ukraine slapped a wide-ranging ban on cross-border currency transfers and purchases of foreign currency last year, immediately after Russia’s invasion of the country. The prohibition included the repayment of principal and interest on loans extended by foreign lenders, a decision that contributed to most ECAs suspending coverage of Ukraine.

https://www.gtreview.com/news/europe/ukraine-axes-ban-on-eca-backed-loan-repayme...


Japan’s NEXI acquires stake in African Trade Insurance Agency

(Zawya, Dubai, 19 June 2023) Japan’s export credit agency, Nippon Export and Investment Insurance (NEXI), has acquired a stake in the African Trade Insurance Agency (ATI), a Pan-African guarantee institution, following a capital infusion of $14.8 million. The equity investment supports the cooperation between Africa and Japan under the Tokyo International Conference on African Development (TICAD), ATI said in a statement. “As Japan expands its foreign direct investments and footprint into Africa, its membership in ATI will not only improve our institution’s capacity to support trade and investment across the continent but will also attract more Japanese investors under the African Continental Free Trade Area (AfCFTA),” said ATI Chief Executive Officer Manuel Moses.

https://www.zawya.com/en/projects/industry/japans-nexi-acquires-stake-in-african...


African sovereign debt poses challenges for ECA activity

(TFX News, London, 31 May 2023) The spectre of increasing sovereign debt has the potential to swamp future export finance deals and projects in several African jurisdictions. The changes to the OECD Arrangement on officially supported export credit financing put forward in March this year has been ‘music to the ears’ of all those in the industry calling for fundamental reform. We expect to hear more detail from the OECD in July, but from the provisional announcement it looks like tenors on certain transactions will be extended and repayment schedules relaxed for deals in certain sectors, giving greater impetus to deals and projects in the energy transition arena as well as providing a boost to social infrastructure transactions. Many African markets are seen as being challenging largely because of a range of serious risks – and the main ones are often cited as: the debt trap, coups, civil war, terrorism and political risk. In fact, at a recent TXF conference I learned that there are currently 68+ armed conflicts taking place across Africa – when I had originally estimated 40. This announcement has been strongly welcomed by those working in emerging markets, and particularly those active in African markets where so much basic infrastructural and social project work is required ... and where ECA-backed finance will be key.

https://www.txfnews.com/articles/7551/African-sovereign-debt-poses-challenges-fo...


What's New for May 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.

  • CSOs condemn G7 leaders for dangerous backsliding on gas, breaching commitments to end fossil fuel finance
  • Ahead of OECD negotiations, report shows OECD export finance props up fossil fuels, blocking energy transition
  • OECD ECAs urged to scale up climate ambitions
  • 200 and counting – Global financial institutions committed to coal divestment has doubled in 3 years
  • 103 Canadian CSOs call for elimination of fossil fuel subsidies through a robust assessment framework
  • IFC announces it will stop clients funding new coal projects
  • China trails global financial firms in committing to end investments in coal projects
  • Export credit market shows strong growth: Berne Union
  • Heads of G7 Export Credit Agencies - Meeting Statement
  • Quad summit discusses ECA cooperation In Indo Pacific
  • Australian roundtable notes ECA support crucial to transition
  • EU greenlights Denmark’s export and investment fund
  • Tiwi Islanders protest Santos' Barossa gas project in Australia
  • EDC and Alstom support sustainable transport projects
  • UKEF and BAE reach deal over historic Iran weapons sales
  • Swedwatch:  The EU must urgently review its outdated policy on export credits

CSOs condemn G7 leaders for dangerous backsliding on gas, breaching commitments to end fossil fuel finance

(Oil Change International, Washington, 20 May 2923) G7 Leaders in Hiroshima concluded that there is “an important role” for “increased deliveries of LNG” and that “publicly supported gas investments can be appropriate” [i.e. by ECAs], jeopardizing the 1.5ºC warming limit and directly contradicting last year’s G7 commitment to end international public finance for fossil fuels by the end of 2022. The G7 endorsement of increased gas finance comes despite strong opposition. Leading up to the Summit, activists organized over 50 actions in 22 countries to urge Japan and fellow G7 countries to end their support for fossil fuels and to stop driving the expansion of gas and other fossil-based technologies, A majority of international public finance for fossil fuels is provided by OECD governed Export Credit Agencies – more than even Multilateral Development Banks – with 71% of export financing for energy going to oil and gas. OECD ECAs invested in 56% of new hazardous liquified gas (LNG) export terminal capacity built in the last decade (providing at least $81 billion total), helping drive the global fossil gas boom.  Overall, about 42% of all fossil fuel finance [comes] from ECAs under the OECD supported midstream infrastructure activities, such as pipelines, LNG ports, and shipping. At COP26, the 2021 global climate conference in Glasgow, 34 countries and 5 institutions pledged to end direct international public finance for unabated fossil fuels by the end of 2022 and prioritize their public finance fully for the clean energy transition. A regularly updated OIC briefing tracks implementation efforts and assesses whether countries are on track to keep their stop funding fossils promise.

https://priceofoil.org/2023/05/20/csos-condemn-g7-leaders-for-dangerous-backslid...


Ahead of OECD negotiations, report shows OECD export finance props up fossil fuels, blocking energy transition

(Price of Oil, Hiroshima, 20 May 2023) G7 Leaders in Hiroshima concluded that there is “an important role” for “increased deliveries of LNG” and that “publicly supported gas investments can be appropriate”, jeopardizing the 1.5ºC warming limit and directly contradicting last year’s G7 commitment to end international public finance for fossil fuels by the end of 2022. The G7 endorsement of increased gas finance comes despite strong opposition. Leading up to the Summit, activists organized over 50 actions in 22 countries to urge Japan and fellow G7 countries to end their support for fossil fuels and to stop driving the expansion of gas and other fossil-based technologies such as ammonia co-firing in coal-fired power plants. In their Leaders’ Communique, the G7 claim that “they are steadfast in their commitment to … keeping a limit of 1.5ºC global temperature rise within reach”. A true commitment to 1.5°C, however, requires the G7 to explicitly exclude continued investments in new upstream gas projects and Liquefied Natural Gas (LNG) infrastructure. Today’s G7 endorsement of increased gas investments came after a push from Japan and Germany, with Japan using its G7 Presidency to also promote other fossil fuel-based technologies such as hydrogen, ammonia and CCS. The G7 play a central role in enabling the global buildout of LNG infrastructure.

https://priceofoil.org/2023/05/20/csos-condemn-g7-leaders-for-dangerous-backslid...


OECD ECAs urged to scale up climate ambitions

(Global Trade Review, London, 24 May 2023) The export credit agencies (ECAs) of OECD countries should take more ambitious action to protect the climate after pouring 77% of their spending into fossil fuel projects between 2018 and 2020, a campaign group has argued. OECD members pumped an annual average of US$41bn into fossil fuel exports during the three-year period, totalling almost five times the amount of financing provided for clean energy, according to NGO Oil Change International. The report uses energy finance data for OECD members with ECAs which held assets above US$1bn between 2018 and 2020. “This directly contradicts internationally agreed climate goals, including the Paris Agreement objective to align financial flows with the low-carbon energy transition,” says the organisation, which campaigns for an end to public financing for polluting energy sources. ECAs have come under increased scrutiny for their role in fossil fuel finance in recent months, and campaign groups called for strict curbs on such financing as part of the  modernisation of the OECD framework on export credits, announced earlier this year. OECD Arrangement participants are meeting in Paris this week to begin drafting the text of the updated framework. It will likely result in an expansion of the types of projects classed as climate-friendly to include clean hydrogen and ammonia, low emissions manufacturing, zero and low emissions transport, and clean energy minerals and ores. The OECD Arrangement’s announcement of the modernisation package did not include any measures on limiting oil and gas support.

https://www.gtreview.com/news/sustainability/oecd-ecas-urged-to-scale-up-climate...


200 and counting – Global financial institutions committed to coal divestment has doubled in 3 years

(IEEFA, Lakewood OH, 4 May 2023) In its latest report, the Institute for Energy Economics and Financial Analysis (IEEFA) has found that globally significant financial institutions (FIs) are committing to divesting away from coal at a quicker rate as climate change becomes a priority globally. It took almost six years for the first 100 institutions to adopt coal exclusion policies, but since then the number has doubled in just over three years. “Interestingly, it’s not the largest asset managers who are leading the way. It’s more the medium- sized ones who recognise their duty to clients. This is a reflection that the market is learning and learning fast amid regulators getting tough on greenwashing. Collectively, the whole finance ecosystem is working together to find where the issues are,” said IEEFA’s debt markets leader for Asia Pacific Christina Ng. While several large global asset managers have established formal coal exit policies, the three largest asset managers managing assets worth US$20 trillion have either formulated weak coal exit policies or have no policy at all. Overall, there are 114 FIs in Europe, 53 in Asia-Pacific, 27 in North America, 6 in Africa, and 2 in South America. European financial institutions are leading the way in coal divestment with stricter policies than those in other regions. A total of 22 FIs in the emerging economies have also established coal divestment policies, including South Africa, Malaysia, China, Turkey, India, and the Philippines. Interestingly these countries are largely reliant on coal for electricity.

https://ieefa.org/articles/200-and-counting-global-financial-institutions-commit...


103 Canadian CSOs call for elimination of fossil fuel subsidies through a robust assessment framework

(Environmental Defence, Ottawa, 15 April 2023) In a letter to Prime Minister Trudeau, a broad range of Canadian organizations note that it has been over a decade since Canada first committed to ending inefficient fossil fuel  subsidies. Instead of fulfilling this promise, the Government of Canada has continued to  provide billions of dollars to oil and gas companies year after year. Now, the federal government has a critical opportunity to correct its track record and become a global leader in its efforts to eliminate fossil fuel subsidies. Noting the much-anticipated Assessment Framework for Fossil Fuel Subsidies has the potential to set an example for the rest of the world – if the framework delivers the highest possible ambition. Conversely, a weak framework could damage Canada’s credibility in international fora and set a dangerous precedent for other countries. Canada should use the World Trade Organization Agreement on Subsidies and Countervailing Measures Article 1.1 definition of subsidies to ensure all relevant measures are captured in the review. The definition of subsidy used must ensure that all tax and non-tax measures that benefit fossil fuel producers are captured in the review. Canada spent $18B on financial supports for the fossil fuel industry last year.

https://docs.google.com/document/d/1vbu2Ge6gtljKwjiTPqMnVjBXO8ySsBazmoRjxh2bv60


IFC announces it will stop clients funding new coal projects

(IFC, Washington, no date 2023) One of the key goals of the Paris Agreement is to ensure that financial flows are consistent with a pathway toward low emissions and climate resilient development. In 2020, The International Finance Corporation (IFC) the World Bank’s private sector arm launched the Green Equity Approach (GEA) to help our financial institution (FI) clients continue to do business in a changing world. This year (2023) IFC, is taking the next step toward alignment with Paris Agreement ambitions by introducing an update to the GEA under which IFC will start requiring a commitment from FI clients to not originate and finance any new coal projects. Previous policy allowed the IFC’s financial clients to support new coal projects as long as they exited coal by 2030, but new update explicitly rules out new coal. However Re-Course notes that the IFC still has a fossil fuel addiction. In the year when the Multilateral Development Banks (MDBs) are finally aligning their portfolios with the Paris Agreement, over seven years after the Agreement itself was made, it is time for change. [ECA Watch can only hope the OECD and all ECAs could move quickly in this direction for all fossil fuel project credits and insurance.]

https://www.ifc.org/wps/wcm/connect/industry_ext_content/ifc_external_corporate_...


China trails global financial firms in committing to end investments in coal projects

(South China Morning Post, Hong Kong, 4 May 2023) The number of financial institutions globally that have committed to coal divestments has doubled in the past three years, but it remains negligible in China, according to a new IEEFA study. While more than 200 “globally significant” companies now have formal policies restricting investment in coal mining or coal-fired power projects, just three financial institutions from China have established a formal coal policy,

https://www.scmp.com/business/banking-finance/article/3219254/climate-change-chi...


Export credit market shows strong growth: Berne Union

(Reinsurance News, Brighton, 15 May 2023) Berne Union, the global association for the export credit and investment insurance industry, has reported that its market showed “strong growth” across business lines in 2022 and a fall in claims paid overall. Highlights from the year’s data show that the export credit industry supported $2.83 trillion of cross-border trade and investment with an additional $68.6bn in non-cross-border support for exporters. Berne Union notes that growth has been supported by the return of significant transactions in the transportation sector as well as a large expansion of manufacturing sector project. The report notes that renewable energy transactions also continue to increase and are close to doubling 2019 levels, while commitments for natural resources continue to decline now at just 33% of their 2019 levels. Total claims paid fell from $9 billion to $7.6 billion over 2022, following a notable drop in MLT transportation claims which had spiked in the first stages of the pandemic. [However as noted in other articles of this issue of What's New, ECAs poured 77% of their spending into fossil fuel projects between 2018 and 2020, making claims for increased renewable energy transactions almost irrelevant! ]

https://www.reinsurancene.ws/export-credit-market-shows-strong-growth-berne-unio...


Heads of G7 Export Credit Agencies - Meeting Statement

(UK Government, Rome, 19 May 2023) The leaders of official Export Credit Agencies (ECAs) of G7 Countries - Canada, France, Germany, Italy, Japan, United Kingdom and the United States of America – met on May 16th in Rome, hosted by SACE, the Italian ECA. The meeting provided a framework for an open and constructive exchange around topics of relevance for the financing of global trade, from a practical and policy perspective. Discussions centred on recent business trends in the ECA industry, new instruments implemented to address the challenges currently faced by national exporters, policies and initiatives related to climate, as well as on joint support for the reconstruction process in Ukraine:

https://www.gov.uk/government/news/heads-of-g7-export-credit-agencies-meeting-st...


Quad summit discusses ECA cooperation In Indo Pacific

(Deccan Herald, Bangalore, 21 May 2023) The leaders of the US, Japan, Australia and India met for the Quad Summit on the sideline of the G7 conclave in Hiroshima and agreed to work on a Memorandum of Cooperation (MOC) between the export credit agencies of the governments to strengthen collaboration for the promotion of trade, financing of trade-enabling projects, economic development, and knowledge-sharing with respect to the export of goods and services. The MOC underscores the importance of economic development of the Indo-Pacific region and of increasing business opportunities, they said. "We emphasise the importance of adherence to international law, particularly as reflected in the UN Convention on the Law of the Sea, and the maintenance of freedom of navigation... including those in the East and South China Seas,” the leaders stated in a joint statement, tacitly hitting out at China. India on Saturday joined Japan, Australia and the US to denounce China’s “destabilising and unilateral actions” to change the status quo in the Indo-Pacific region and its move to militarise the disputed features in the East and the South China sea.

https://www.deccanherald.com/national/quad-denounces-china-s-destabilising-actio...


Australian roundtable notes ECA support crucial to transition

(Infrastructue Investor, Sydney, 19 May 2023) Australia’s infrastructure sector has centred on privatisations for decades. But a rapidly changing world calls for more greenfield development. Australia’s transition prospects have recently been boosted by the country’s most significant emissions reduction legislation in more than a decade. Total emissions from major industrial facilities must now be cut and not just offset. This is deemed critical to meeting Australia’s net-zero pledge, which will require a 45% reduction in emissions by 2030. Danny Latham, head of Australia and New Zealand at Igneo Infrastructure Partners notes: “We need something like $400 billion of investment in renewable generation and associated transmission links to get anywhere near 2050 net-zero targets". Aaron Ross of rhw ANZ Banking Group notes that one way the Australian government could better support technologies associated with the transition is through export credit. “The Danish and Korean export credit agencies EKF, KEXIM and K-Sure have been providing significant support to help develop wind and battery manufacturing projects, for example,” he says. “We have seen similar things in Taiwan, Southeast Asia and Europe generally. There are opportunities for Australia too, in terms of accessing the Export Credit Agency market as an additional source of capital to fund the transition.”

https://www.infrastructureinvestor.com/australia-roundtable-fit-for-the-future/


EU greenlights Denmark’s export and investment fund

(ScandAsia, Bangkok, 18 May 2023) The European Commission has approved Danish measures to set up Denmark’s Export and Investment Fund. The fund has a total estimated value of over €4 billion. It aims at supporting economic development, competitiveness, innovation, and growth for Danish companies. Denmark notified the commission its plans to set up the fund, with an initial capital of up to €807 million. The fund will be established as a new, fully state-owned entity gathering three existing state-owned entities: the Danish Growth Fund, the EKF Denmark’s Export Credit Agency and the Danish Green Investment Fund.

https://scandasia.com/eu-greenlights-denmarks-export-and-investment-fund/


Tiwi Islanders protest Santos' Barossa gas project in Australia

(Upstream, Perth, 29 May 2023) Australian oil giant Santos denied claims of human rights abuses against Indigenous Australians relating to domestic gas and LNG projects planned or under development that have been alleged to some of the company’s investors and financiers. Equity Generation Lawyers, which bills itself as specialists in Australian climate change law, early last month filed human rights grievances against financial institutions supporting the Barossa gas project located in waters off northern Australia. Those financial institutions included Australia’s ANZ and Westpac, DNB Bank of Norway, Singapore’s DBS Bank and three Japanese banks. In tandem, export credit agencies in Japan and South Korea that are set to provide financial support to Santos’ project partners from those nations also received letters of complaint. The company has more than 90 agreements in place across Australia that relate to native title, Aboriginal land rights and cultural heritage management, involving six Aboriginal Land Councils and 23 Traditional Owner groups.

https://www.upstreamonline.com/people/santos-rejects-human-rights-abuses-relatin...


EDC and Alstom support sustainable transport projects

(Railway Gazette, Suttton UK, 24 May 2023)  Alstom and Export Development Canada have signed a C$3·5bn three-year sustainable global corporate partnership covering export financing support and insurance in the transport sector. The export credit agency will focus its support on digital systems, services and projects based on low-emission freight and passenger transport technologies. These could include electrified, hybrid, battery or hydrogen propulsion. Alstom will report on sustainability using indicators such as CO2 emissions, renewable energy and gender balance.

https://www.railwaygazette.com/export-credit-agency-to-support-sustainable-trans...


UKEF and BAE reach deal over historic Iran weapons sales

Global Trade Review, London, 15 May 2023) UK Export Finance (UKEF) and defence giant BAE Systems have struck a last-minute out of court deal to settle a £13.9mn claim by the government agency over guarantees for missile systems sold to Iran in the 1970s. In around 1980, export credit agency UKEF paid a claim under a policy covering contracts for the supply and maintenance of the Rapier surface-to-air missile system, a deal which fell apart in the wake of the Islamic Revolution of 1979. A UKEF spokesperson later confirmed to GTR that a deal was struck and the trial averted, but did not provide details of the settlement. Court documents show that UKEF paid BAE (then BAC) £27.3mn under guarantees issued between 1973 and 1977, when Iran was ruled by Western-backed autocrat Shah Mohammed Reza Pahlavi. But in 1991, Iran’s defence ministry launched arbitration proceedings in The Hague against BAE for alleged non-performance of defence contracts, which triggered a counterclaim by the UK firm. Almost two decades later the arbitration panel awarded BAE £28.8mn from the Iranian defence ministry, while Iran was awarded an undisclosed “greater amount” from BAE in relation to other contracts not covered by the UK government guarantees. BAE has historically been a major purchaser of UKEF’s export credit products. Between 2018 and 2022 alone, UKEF extended £3.5bn in support to BAE through direct lending and buyer’s credit, according to the agency’s data.

https://www.gtreview.com/news/europe/ukef-and-bae-reach-deal-over-historic-iran-...


SWEDWATCH: The EU must urgently review its outdated policy on export credits

(Swedwatch, Stockholm, 27 April 2023) Despite promises to make financial flows consistent with a low-carbon economy, EU member states continue to provide financial support to the fossil fuel industry through export credits. It is time that the EU Commission replaces its outdated policy with new and ambitious regulation, prohibiting export support to oil and gas, Swedwatch argues in a new policy paper. “Export credit agencies are the world’s largest international public financiers of fossil fuels. In the EU, the lack of an ambitious regulatory framework allows for oil and gas projects to continue to be supported through state-backed export finance, undermining EU contributions to climate goals. This gap needs to be urgently addressed“, says Davide Maneschi, climate change program officer at Swedwatch. Export credit agencies (ECAs) have a critical role in the energy transition, as they de-risk large scale infrastructure and energy projects. However, in the period 2019-2021, some six years after the Paris Agreement was signed, G20 export credit agencies provided seven times more support for exports of fossil fuel projects than for clean energy. In an April 27 policy paper Swedwatch calls on the European Commission to promptly initiate a reform of  the regulatory framework on the activities of ECAs, ensuring that they are aligned with the Paris Agreement 1.5°C climate change mitigation goals and EU climate objectives.

https://swedwatch.org/themes/eu-must-urgently-review-its-outdated-policy-on-expo...


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