(IISD, Winnipeg, 16 September 2021) A UN Special Rapporteur has issued 2 reports on human rights in the area of hazardous substances. The report calls for phasing out subsidies and export credit and guarantees for fossil fuel extraction, plastics production facilities, and plastic-to-energy projects. One report addresses the stages of the plastics cycle and their impacts on human rights, and focuses on the right to science in the context of toxic substances. Marcos Orellana, the UN Human Rights Council Special Rapporteur on the implications for human rights of the environmentally sound management and disposal of hazardous substances and wastes, writes that the global plastics crisis reveals how every stage of the plastics cycle, including extraction and refining, production, transport, use, and waste. has adverse effects on the full enjoyment of human rights. The report (A/76/207) includes recommendations to address the negative consequences of the plastics cycle on human rights and integrate a human rights-based approach in transitioning to a chemically safe circular economy.
Newsletter
SACE says exports to return to pre-COVID levels this year
(ANSA, Rome, 14 September 2021) The global economy’s rebound from the effects of the COVID-19 pandemic will see Italian exports return to pre-pandemic levels this year and grow further in the coming years, export credit agency SACE said in a report on Tuesday. SACE forecast that Italian exports would increase 11.3% this year, with foreign sales of Italian goods worth 482 billion euros. It said exports would then grow by 5.4% in 2022 and by 4% in 2023.
Will ECAs support Afghan projects under the Taliban
(Bloomberg Opinion, 7 September 2021) In an opinion written for Bloomberg, the former Governor of the central bank of Afghanistan (DAB) notes: “There are optimistic suggestions that the hard-won integration of Afghanistan into the global economy will remain despite the ascendancy of the Taliban and the withdrawal of the U.S. A number of commentators have suggested that China — which the Taliban have declared their strongest ally — could become Afghanistan’s primary economic supporter and help the country stay part of the global system. That analysis is unrealistic. For one, it ignores the sanctions regime imposed by the international community on the Taliban… Afghanistan’s physical money supply will be impaired. This is because the central bank does not print its own currency: DAB typically receives afghanis produced by specialist firms overseas… I am relatively certain that these deliveries cannot be made… Second, the $7 billion Turkmenistan-Afghanistan-Pakistan-India natural gas pipeline project (TAPI) will likely not proceed. This pipeline would have brought 33 billion cubic meters of natural gas annually from the Turkmen Galkynysh field — the world’s second largest — to Pakistan and India. It would have generated a few hundred million dollars in transit revenues for the Government of Afghanistan… As a result of the sanctions regime and security concerns, European companies will not be able to provide equipment or the financing. They will certainly not be able to obtain insurance for the project. For now, the project has to be assumed to be dead… Third, hopes to profit from the country’s mineral resources have to be scaled back — or abandoned… these projects requires international financing and more… The Taliban will face the same economic challenges as the previous regime — but under sanctions and with much less international financial support. Afghanistan’s new rulers must face this reality, form an inclusive government and adhere to international standards. Otherwise, they will further impoverish themselves and the Afghan people.”
Saudi EXIM Bank signs a reinsurance agreement with ICIEC
(Saudi Gazette, Jeddah, 3 September 2021) The Saudi Export-Import Bank (EXIM Bank) has signed an agreement with the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), to launch a special insurance product that helps Saudi banks to provide more credit facilities for the export of Saudi non-oil products, and enable them to increase their ability to enhance letter of credit received from foreign banks for the benefit of Saudi exporters.
SACE backs Lima Metro Line 2
(Global Legal Chronicle, Rome, 2 September 2021) A syndicate of lenders, including Cassa Depositi e Prestiti, KfW IPEX-Bank, Société Générale, Banco Santander and Instituto de Crédito Oficial E.P.E. – ICO, provided a US$811 million syndicated credit facility backed by the Italian export credit Agency SACE, involving the securitization of Peruvian government-backed payment rights for the extension of Lima’s Metro Line 2. The export credit agency-backed syndicated loan involved a securitization of RPI-CAOs and will be used to finance the development and construction of the Lima Metro Line 2 and is the largest RPI-CAO deal ever financed under a credit facility financing structure in Peru.
Exim India extends $100 mn loan to Africa Finance Corp for infra development
(Business Standard, New Delhi, 31 August 2021) Exim Bank of India has extended a line of credit of $100 million on behalf of the Indian government to the Africa Finance Corporation (AFC) to develop infrastructure in the continent and boost economic revival of countries in the region, infrastructure required for the revival of Africa’s economies in the wake of the COVID-19 pandemic.
Aligning export finance to sustainable development goals
(Bizcommunity, Cape Town, 23 September 2021) A clear call to action to rethink the sustainability performance of the export finance market has come out of an International Chamber of Commerce (ICC) white paper. Released at a major event during United Nations (UN) General Assembly week and developed with the support of the Rockefeller Foundation and 16 leading banks, the white paper explores how the US$700bn export finance industry can significantly increase its contribution to the achievement of the UN Sustainable Development Goals (SDG) and the Paris climate accord.
Swedish ECA launches Green Guarantee to promote climate investments
(EKN, Stockholm, 15 September 2021) EKN launches a new credit guarantee to facilitate financing of green exports as well as green transition projects within Swedish exporting companies. The new guarantee covers the bank’s risk up to 80 percent instead of previously 50 percent, which increases the capacity for credit. It is offered to companies with direct or indirect exports that contribute to the climate transition. The assessment criteria’s will be based on the EU-taxonomy. EKN’s Green Guarantee covers both working capital and financing of a specific investment, in businesses contributing to the climate transition. In addition, a Scientific Climate Council, a group of academic experts, will provide advisory support to the Swedish Export Credit Agency (EKN) and the Swedish Export Credit Corporation (SEK) to assist aligning the Swedish export finance system with the Paris Agreement’s 1.5°C goal, according to a SEK press release. The climate council is the first of its kind in the world and will focus on issues such as the role of natural gas for the energy transition in low- and middle-income countries.
UKEF targets net zero emissions by 2050
(Energy Live News, London, 23 September 2021) The UKEF has committed to making all of its £50 billion capacity carbon-neutral by 2050 on a net basis. Through its new climate strategy, the country’s export credit agency will increase its support for clean growth, renewables and climate adaptation exports. UKEF currently has a £50 billion capacity to support UK exports through loans and insurance. Through the new agreement, this capacity will be entirely carbon-neutral by 2050 on a net basis. It hopes its actions can inspire more financial institutions to take action ahead of COP26 in less than 50 days. Anne-Marie Trevelyan, International Trade Secretary, said: “UKEF’s net zero pledge shows the UK’s climate leadership and is an encouragement for other countries to follow suit. Meanwhile, a South West Business Council survey of companies finds many are not prepared to tackle emmissions and many have yet to be convinced about the economic benefits of going green and want financial support to achieve it.
New report reveals German government sabotages international energy transition
(Urgewald, Berlin, 15 September 2021) A new report by the environmental organisations urgewald and Deutsche Umwelt-Hilfe (DUH) shows that the German government is supporting climate-damaging oil and gas projects with guarantees worth billions of euros. In the report, the organisations examine climate-damaging oil and gas-related export credit guarantees as well as untied loan guarantees (UFK guarantees) for the period 2015 to May 2021. During this time, the German government approved 144 export guarantees in the oil and gas sector with a total volume of more than 11.75 billion euros via Euler Hermes AG. Of the 28 countries in which oil and gas guarantees were granted, 15 are considered “not free”, according to Freedom House. The report is based on data made available to the two organisations by the German government through a Freedom of Information Act request.
