ECAs shy away from ‘dirty’ coal deals

(Trade & Export Finance, London, 8 February 2016) Low prices and dwindling sources of finance are forcing coal producers to turn increasingly to export credit agencies (ECAs) to support their capital needs. But ECAs and their governments, increasingly driven by environmental concerns, show little or no appetite for coal projects... In December 2015, the participants in the OECD Arrangement on Officially Supported Export Credits agreed new restrictions on providing support to inefficient coal power stations, specifically as a way of tackling climate change... The OECD coal ruling was surprisingly popular among member states, with only Australia and Japan consistently opposed to the proposal...After two years of negotiations, the final agreement made one concession, which allows ECAs to support high-efficiency coal project deals.