OECD Council ratifies Recommendation on Common Approaches

(OECD, Paris, 28 June 2012) The OECD Council has ratified the Recommendation on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence, claiming the new rules will strengthen current environmental and social due diligence processes. Article 28 of the new Common Approaches still allows Members "to support a project that does not meet the relevant aspects of the international standards" provided they report their reasons to the OECD. At the same time, a new sector understanding on renewable energy, climate change mitigation and water projects was agreed to replace Annex IV of the Arrangement, a "Gentlemen's Agreement" amongst its Participants who represent most OECD Member Governments. The Arrangement sets forth the most generous export credit terms and conditions that may be supported by its Participants without being deemed a subsidy under the WTO Agreement on Subsidies and Countervailing Measures (ASCM).