Some ECA clients get untied credit while renewable energies don't

August 2005 (ECA Watch, Paris) — Participants in the OECD mediated Arrangement on Export Credits [PDF] refused to approve an increase of local cost financing for southern buyers from 15% to 30% of a project's value for renewable energy projects at their April 2005 meetings. However, the ECGD and other ECAs have for years offered small exporters competing for contracts under £10M more generous rules relating to foreign goods by supporting non-national content of up to 40%. NGOs question why some ECAs can be flexible for some projects yet cannot reach consensus on these conditions for renewable energy local costs, especially since these not only enhance competitiveness as well as sustainable development via technology transfers, but also respond constructively to the upcoming global energy crisis.