NGOs criticize OECD approval of weak environmental standards for export credits

(ECA Watch, Paris, 29 June 2007) Environmental NGOs have criticized the OECD Council for its June 12 approval of the weak and unenforceable environmental policy Recommendation of the OECD Export Credit Working Group (ECG). After 17 months of dithering, the Recommendation barely revises the 2003 version of environmental and social standards governing projects supported by export credit guarantees or loans over 10 million SDRs (US$15.3 million or €11.2 million). Many OECD Member export credit agencies (ECAs) did not want to make even common sense changes to the 2003 standards and some even wanted to weaken standards, citing competition with Chinese ECAs which they say have no such standards, despite the growing number of OECD ECA joint ventures with the Chinese.