ECA Watch Newsletter

What's New for September 2023

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • Rich country ECAs sink billions into oil and gas despite Cop26 pledge
  • ECA Market Booming Worldwide
  • Export Finance for Future (E3F) and accountability
  • Trade Credit Insurance Market Report by Development Factors 2031
  • UK, Japanese and Italian ECAs support projects in Africa
  • Uganda in talks with Chinese ECA for pipeline funds after Western banks cave in
  • FSD Africa Investments Pledges $19.5 Million to Fortify Africa’s Climate Resilience
  • UAE pledges $4.5bn for Africa clean energy projects
  • USEXIM to Invest $5 Billion in Space Industry
  • Ukraine’s ECA-backed exports hit record high
  • US Exim approves first domestic manufacturing deal
  • Could ECAs finance cleaner steel & industrial hubs?
  • Hungary Exim wins World Bank support for ING loan
  • Canada restricts subsidies, but delays plan to end billions more in ECA fossil fuel finance

Rich country ECAs sink billions into oil and gas despite Cop26 pledge

(Climate Change News, Broadstairs UK, 7 September 2023) The US, Germany and Italy have been accused of backsliding on a Glasgow promise to end public subsidies to fossil fuel projects overseas. They are among rich countries providing billions of dollars of public subsidies to fossil fuel projects abroad this year despite promises to end this support. Export credit and development agencies from six developed nations have approved $4.4 billion in funding for oil and gas projects overseas since the start of 2023, research from campaigning group Oil Change International shows. More than half of the total financing has been provided by the United States ($1.5 billion) and Italy ($1.2 billion), followed by Germany, Japan, the Netherlands and Switzerland. Common Dreams notes that: "The U.S., Italy, and Germany are going rogue by backtracking on their commitment to end international public finance for fossil fuels," said one analyst. "There needs to be accountability."

https://www.climatechangenews.com/2023/09/07/rich-countries-sink-billions-into-o...


ECA Market Booming Worldwide

(openPR, 7 September 2023) The latest study published by HTF MI Research on the "Import Export Insurance Market'' evaluates market size, trend and forecast to 2029. Some of the Major Companies covered in this Research are Atradius (Netherlands), Euler Hermes/Allianz Trade (France), Coface (France), Zurich Insurance Group (Switzerland), Chubb Limited (Switzerland), Allianz SE (Germany), Liberty Mutual Insurance (United States), Tokio Marine Holdings (Japan), AXA XL (France), QBE Insurance Group (Australia), Sompo Holdings (Japan), AIG (American International Group) (United States). According to HTF Market Intelligence, the Global Import Export Insurance market [is] to witness a CAGR (compound annual growth rate) of 8.4%, an increase by USD 7.94 Bn, during the forecast period of 2023-2028. Global Import Export Insurance Market Breakdown by Application (Manufacturing, Agriculture, Energy, Retail, Others) by Type (Export Credit Insurance, Marine Insurance, Political Risk Insurance, International Product Liability, Others) by Organization Size (Large Enterprise, Small and Medium Enterprise (SMEs)) and by Geography (North America, South America, Europe, Asia Pacific, MEA).

https://www.openpr.com/news/3200455/import-export-insurance-market-is-booming-wo...


Export Finance for Future (E3F) and accountability

(LinkedIn, Sunnyvale CA, Unknown date) An international coalition working to harness public export finance as a key driver in the fight against climate change. [ECA Watch note: Unfortunately E3F uses the LinkedIN professional network which relies on professional contacts, does not display dates for postings, and uses a format which is much less public than web page or Facebook networks, thus much less open to public information sharing and accountability.] E3F was launched by 7 European countries at ministerial level in April 2021 to align public export finance with climate goals. More specifically, the coalition aims to increase support for sustainable and climate-friendly projects and accelerate the progressive phasing out of fossil fuel related projects. With this, the coalition members, currently composed of the governments of Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Spain, Sweden and the United Kingdom, reaffirm their commitment to contribute to the climate goals of the Paris Agreement and to promote consistent international standards and pursue ambitious multilateral action. All current members are also signatories to the COP26 statement on international public support for the clean energy transition. From the E3F LinkedIn page: "Denmark is pleased to announce that Denmark will take over the chairpersonship of the Export Finance for Future (E3F) Coalition for the coming year. The coalition warmly thanks Germany for their efforts and for successfully steering E3F through the last year, maintaining our commitments and ambition through the energy crisis. There is a solid foundation for moving E3F further, and Denmark looks forward to taking up the mantle. The focus for the coming year will be on ensuring the continued credibility and increasing the visibility of the coalition, fostering dialogue with non-members and stakeholders, deepening the coalition and strengthening the coherence with other government initiatives." German NGO World Economy, Ecology & Development (WEED) has urged Denmark within E3F to "push all members to adopt ambitious local stratgies to end export finance for fossil fuels! - where Germany failed during their chairpersonship!"

https://www.linkedin.com/company/export-finance-for-future-e3f/


Trade Credit Insurance Market Report by Development Factors 2031

(Benzinga, Detroit, 11 September 2023) The Trade Credit Insurance Market Insights of 2023 is an extensive and comprehensive report that provides a complete analysis of the market's size, shares, revenues, various segments, drivers, trends, growth, and development. The Trade Credit Insurance market is expected to grow annually by (CAGR 2023 - 2031). The Trade Credit Insurance market report is a striking 131 pages that includes a comprehensive table of contents, a list of figures, tables, and charts, as well as extensive analysis. This report offers valuable insights to industry stakeholders and vendors. The report highlights company profiles, financial metrics, market demands, technological innovations, and regional developments. [A single user license costs US$4000.]

https://www.benzinga.com/pressreleases/23/09/34464120/trade-credit-insurance-mar...


UK, Japanese and Italian ECAs support projects in Africa

Zawya, Dubai, 7 September 2023) The UK and Japanese export credit agencies (ECAs) have signed a memorandum of understanding (MoU) to support their future collaboration on sustainable projects worldwide, especially in Africa. The terms of the agreement will guide the UK Export Finance (UKEF) and Nippon Export and Investment Insurance (NEXI) to collaborate on projects around the world – especially in Africa and the Indo-Pacific – which draw on UK and Japanese supply chains, the UKEF said in a statement. With a focus on export credit policy and co-investment projects, the partnership between the two ECAs will support the international competitiveness of UK and Japanese businesses as they seek to access global trading opportunities, the statement added. In other news, The director of Mozambique NGO Justiça Ambiental has charged that "rich countries are addicted to fossil fuels" and emphasized the importance of fighting against oil and gas projects, noting that "If there isn't a strong backlash, the rest of the world will follow soon and then there will be no chance for vulnerable countries like Mozambique to deal with the ravages of the climate crisis... Instead of supporting Mozambique to develop clean and just energy sources, these countries are pushing Mozambique down a fossil fuel development pathway." The director took aim at Italian export credit finance agency SACE for its involvement in "the gas rush in northern Mozambique, which has led to human rights abuses, devastated lives, increased conflict and militarization, and oppression of communities, journalists, and civil society."

https://www.zawya.com/en/projects/utilities/uk-and-japanese-export-credit-agenci...


Uganda in talks with Chinese ECA for pipeline funds after Western banks cave in

(Reuters, Kampala, 25 September 2023) Uganda is in advanced talks with Chinese export credit agency SINOSURE to provide credit for its crude oil pipeline after pressure from environmentalists forced some Western banks to recoil from the project, a top official said on Monday. The 1,445-kilometre (898-mile) East African Crude Oil Pipeline (EACOP) is planned to help Uganda export its crude from oilfields in the country's west via a port on Tanzania's Indian Ocean coast. It is co-owned by the government of Uganda, France's TotalEnergies (TTEF.PA), China's CNOOC (0883.HK) and Tanzania's Tanzania Petroleum Development Corporation (TPDC). The project will cost $5 billion, including the cost of credit and 40% of the money will be raised through debt while the rest will come from equity. Activists contend that the project violates the Equator Principles, a set of standards adopted by these specific lenders for assessing, determining, and managing social and environmental risk for project finance. In addition to Kampala, London, Paris, and New York, the Eacop demonstrations also took place in 18 other cities, including Tokyo, Johannesburg, Frankfurt, Brussels, Sendai, Hoima, Nagoya, Toronto, Fukuoka, Goma, Cape Town, Amsterdam, Copenhagen, and Vancouver.

https://www.reuters.com/markets/commodities/uganda-talks-with-chinese-credit-age...


FSD Africa Investments Pledges $19.5 Million to Fortify Africa’s Climate Resilience

(Techinafrica, South Africa, 8? September 2023) [A somewhat confused article apparently about an investment in un-named Latin American ride sharing services by an African investment fund backed by un-named ECAs.] "To enhance mobility and environmental sustainability in Latin America, FSD Africa Investments (FSDAi) [a UK International Development funded regional programme operating in more than 30 countries from its Kenya base] has forged a significant alliance with the [South African] ride-hailing service [app] InDrive." [An Uber cum taxi competitor now operating in 6 other African countries]. FSDAi’s investments in Acre Impact Capital’s Export Finance Fund I, the Catalyst Fund, and Camco’s Spark Energy Services underscore the institution’s commitment to collaborating with local investment managers and venture capitalists. The goal is to champion environmentally-conscious enterprises that might otherwise face challenges securing the necessary capital. [Support for privately owned automobile services is environmentally conscious?]

https://www.techinafrica.com/fsd-africa-investments-pledges-19-5-million-to-fort...


UAE pledges $4.5bn for Africa clean energy projects

(Argus Media, Nairobi, 5 September 2023) The UAE will provide $4.5bn in finance to accelerate the development of clean energy projects in Africa, UN climate summit Cop 28 president-designate Sultan al-Jaber said today at the Africa Climate Summit in Nairobi. Abu Dhabi's state-owned renewables firm Masdar, Abu Dhabi Fund for Development, Etihad Credit Insurance, the country's export credit agency and Amea Power — a Dubai-based renewable-energy company — will provide the funds, al-Jaber said. Africa development bank's Africa50 investment platform will act as a strategic partner to help identify initial projects. The pledge aims to "catalyse at least an additional $12.5bn from multilateral, public and private sources," al-Jaber said. "This initiative will target countries with clear transition plans, robust regulatory frameworks and a real commitment to putting the necessary grid infrastructure in place," he added. Africa's annual climate finance needs amount to $250bn, according to the African Development Bank, but the continent only receives 12pc of the total, and less than 2pc is going to adaptation, according to al-Jaber.

https://www.argusmedia.com/en//news/2486005-uae-pledges-45bn-for-africa-clean-en...


USEXIM to Invest $5 Billion in Space Industry

(CNBC, Paris, 11 September 2023) The U.S. export credit agency is working through a $5 billion pipeline of applications related to the space industry, as companies look to fund projects in orbit in a tighter capital market. The Export-Import Bank of the United States, or EXIM, is no stranger to financing space projects such as satellite and rocket products. EXIM generally sees more applications during tougher economic times, as the previous bulk of its financing for the space sector came between 2010 and 2015. “In our pipeline related to this industry, about $1.3 billion are likely to come to fruition within a year and another $4 billion that we’re looking at are a little less further along,” Judith Pryor, EXIM’s first vice president and vice chair of the board of directors, said on Monday at the 2023 World Satellite Business Week conference.

https://www.cnbc.com/2023/09/11/us-export-import-bank-working-through-5-billion-...


Ukraine’s ECA-backed exports hit record high

(Global Trade Review, London, 30 August 2023) The export credit agency (ECA) of Ukraine insured loans for exports worth more than Hrn1bn (US$27.1mn) for the first time last month, as the agency continues to increase the scale of its support for trade from the war-torn country. The Ukrainian ECA was founded in 2018, began operations in 2022 and in 2021 covered Hrn12.5mn in financing for exporters. A total of 10 exporters were supported across the country. The largest individual loan, for Hrn20mn, was issued in Kyiv. The three banks that have provided the most in loans in 2022/23 are two major Ukrainian banks, Oschadbank and Ukrgasbank, and Vienna-headquartered Raiffeisen Bank. They issued loans of Hrn256.3mn, Hrn229mn and Hrn210mn, respectively, financing exports worth a total of Hrn5.33bn. In July, Russia withdrew from the Black Sea Grain Initiative, an agreement that saw the safe shipment of grain from Ukraine, and so far no new deal has been successfully negotiated. The news also comes weeks after the Ukrainian central bank said it was removing a ban on ECA-backed loan repayments, put in place amid Russia’s invasion of the country. The National Bank of Ukraine had barred the repayment of principal and interest on loans from foreign lenders. Following the invasion, several ECAs suspended coverage for Ukrainian trade, and some claimed the ban on overseas payments was the reason. While several countries, including Canada, the UK and the US, kept their coverage and credit limits for exports to Ukraine, in September 2022 the agency asked ECAs to restore their pre-war coverage limits.

https://www.gtreview.com/news/europe/ukraines-eca-backed-exports-hit-record-high...


US Exim approves first domestic manufacturing deal

(Global Trade Review, London, 5 September 2023) The Export-Import Bank of the United States (US Exim) has approved the first transaction under its domestic manufacturing programme, a direct loan of US$4.7mn to a Pennsylvania-based technology firm. The transaction comes more than a year after US Exim formally launched its Make More in America Initiative (MMIA), which in the time since has made available the agency’s range of medium and long-term loans for the establishment or expansion of US-based manufacturing facilities with an “export nexus”. US Exim had been recommended to explore the possibility of creating such a product a year earlier, following a 100-day White House review of supply chains for critical products, such as minerals and semiconductors.

https://www.gtreview.com/news/americas/us-exim-approves-first-domestic-manufactu...


Could ECAs finance cleaner steel & industrial hubs?

(Clean Technica, Bradenton FL, 15 August 2023) The climate finance community should be watching Sweden. Swedish steelmaker H2 Green Steel (H2GS), founded in 2020 to produce (using renewable hydrogen), is completing a landmark €5 billion+ fundraise for its first plant in Boden, near the Arctic Circle in northern Sweden, an industrial project finance template is taking shape and it’s important: heavy industry produces 30% of global carbon emissions and steelmaking is 7% alone. Export credit agencies may be less nimble than private lenders, due to the government oversight and political constraints they must operate within. But for these first-of-a-kind deals, they are proving to be powerful allies, both as debt guarantors and direct lenders. In the H2GS deal, Swedish ECA Svensk Exportkredit participated in the €3.3 billion senior debt tranche alongside commercial banks. Meanwhile, the core ECA, Allianz-owned Euler Hermes, committed to guaranteeing €1.5 billion of the senior debt.

https://cleantechnica.com/2023/08/15/5-lessons-for-industrial-project-finance-fr...


Hungary Exim wins World Bank support for ING loan

(Global Trade Review, London, 13 September 2023) The Hungarian Export-Import Bank (Hungary Exim) will boost sustainable lending after securing a €300mn loan extended by investment bank ING and covered by the investment insurance arm of the World Bank. The World Bank’s Multilateral Investment Guarantee Agency (Miga) issued €386mn in guarantees to ING, covering the Dutch lender’s principal, interest and other financing costs on the debt. Hungary Exim says it will use the credit line to launch new green financing products and primarily to support SMEs, although some “larger” sustainable projects may also benefit.

https://www.gtreview.com/news/europe/hungary-exim-wins-world-bank-support-for-in...


Canada restricts subsidies, but delays plan to end billions more in ECA fossil fuel finance

(Above Ground, Ottawa, 4 August 2023) Ottawa has taken a major step forward towards ending another significant component of its fossil fuel support. It announced last week a policy that makes Canada the first G20 country to publish a plan for delivering on the group’s 2009 commitment to phase out so-called “inefficient” subsidies to the fossil fuel sector. Under the new policy, federal support identified as a fossil fuel subsidy can no longer be provided unless it fulfills one of six criteria. Unfortunately, these criteria provide for significant exemptions that may allow fossil fuel companies peddling false climate solutions to benefit from billions of dollars a year in tax breaks and public spending. For example, Ottawa will still provide subsidies that facilitate “abated production processes” – language often used by oil companies to describe their use of carbon capture technology to reduce emissions from their own operations. This ignores the much larger quantity released when the fuels they produce are burned. Perhaps most significantly, the new policy leaves intact public financing from Export Development Canada (EDC), which Ottawa – contentiously – doesn’t consider a subsidy. Last year alone, EDC provided roughly $20 billion in financing to oil and gas companies, mostly in the form of loans, guarantees and insurance. This represents the overwhelming bulk of Canada’s financial support for the sector. Ottawa has pledged to “develop a plan” to phase out this financing as well. As of January the government has, under its Glasgow policy, barred EDC from providing new, direct financing for most oil and gas activities abroad. Yet this doesn’t touch the majority of EDC’s fossil fuel finance, which supports the industry’s operations in Canada.

https://aboveground.ngo/canada-restricts-subsidies-but-delays-plan-to-end-all-fo...


What's New for August 2023

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • OECD Modernisation of the Arrangement on Export Credits
  • Australian Government sued for failing to report the climate and biodiversity impacts of subsidising fossil fuel projects
  • Green Groups Call on EXIM to Reject PNG LNG Project
  • US fossil fuel hypocrisy is betraying the planet
  • The BRICS come of age [But what role for ECAs?]
  • EU’s €45bn plan to tackle Latam productivity woes
  • Feet to the Fire: Big Oil and the Climate Crisis
  • India's Reliance Jio ties up $2.2 bn funding from Sweden's EKN for 5G equipment
  • New Chinese growth drivers sought to boost exports amid weak global demand
  • Sinosure’s Country Blacklist?
  • Russian ECA plans special loans for African companies
  • Four Emirati women lead UAE’s powerful financial institutions
  • UKEF to provide £192m loan guarantee to boost Ukraine nuclear capabilities
  • Arafura Rare Earths offered EDC and Euler Hermes support
  • Euler Hermes to back €1.29bn financing for Angolan solar infrastructure development
  • EDC trying to reclaim $347 million insurance payout to Suncor linked to Libya unrest

OECD Modernisation of the Arrangement on Export Credits

(Sullivan&Cromwell LLP, New York, 10 August 2023) On July 14, the OECD published the revised text of the Arrangement on Officially Supported Export Credits (the “Arrangement”). This forms part of the landmark modernisation of the Arrangement, as previewed in March of this year. The revised text of the Arrangement is intended to allow export credit agencies from participating countries to support a wider range of climate-friendly and sustainable projects on more flexible terms. The main changes are focused on (1) expanding the scope of “green projects” that benefit from more favourable terms; (2) extending repayment terms and introducing greater repayment flexibility; (3) simplifying the Arrangement; and (4) introducing a more robust transparency regime. [As noted in our June 2023 What's New, the agreement does nothing to restrict oil and gas financing. OECD ECAs supported fossil fuel exports by an average of $41 billion from 2018 to 2020, almost five times more than their clean energy support ($8.5 billion) over the same period. It remains to be seen if allowing for more climate friendly and sustainable finance actually makes it happen.]

https://www.sullcrom.com/insights/memo/2023/August/S-C-Energy-Transition-Insight...


Australian Government sued for failing to report the climate and biodiversity impacts of subsidising fossil fuel projects

(Jubilee Australia, NSW, 18 July 2023) Jubilee Australia, a human rights and environmental organisation, has filed legal proceedings this morning (18th July) in the Federal Court of Australia against federal government agencies that subsidise new fossil fuel projects but don’t disclose the full environmental impacts of those activities. The claim is against Export Finance Australia (EFA) which is Australia’s export credit agency, and the Northern Australia Infrastructure Facility (NAIF), a $7bn fund for infrastructure in northern Australia. Both provide taxpayer-subsidised finance for risky new fossil fuel and related projects that would otherwise not go ahead. “There are very real fears that without clearer climate commitments, EFA and NAIF could fund infrastructure in Darwin designed to support a massive expansion of fossil gas – such as Middle Arm, or to subsidise some of the world’s largest fossil fuel companies such as TotalEnergies and ExxonMobil’s Papua LNG project in Papua New Guinea, similar to what EFA has previously done,” Luke Fletcher Director of Jubilee Australia said.

https://www.jubileeaustralia.org/news/latest-news-post/jubilee-sues-government


Green Groups Call on EXIM to Reject PNG LNG Project

(Common Dreams, Portland, 29 August 2023) More than two dozen advocacy groups from Papua New Guinea, the Asia Pacific region, and the United States on Tuesday urged the U.S. export credit agency to reject a liquefied natural gas project that they warned “presents significant financial risks and opportunity costs, as well as harmful climate impacts.” The groups — including the Center for Environmental Law and Community Rights Inc. (CELCOR), Food & Water Watch, Friends of the Earth (FOE) United States, Global Witness, Oil Change International (OCI), and Sierra Club — wrote to U.S. Export-Import Bank (EXIM) Chair Reta Jo Lewis about the Papua LNG project led by TotalEnergies. The coalition argued that approving Papua LNG not only would contradict the Biden administration’s 2021 pledge to end new public support for fossil fuel energy projects abroad and “further position the United States as an international laggard on climate, but would further jeopardize international climate goals, risk $13 billion USD in stranded assets, and put Pacific frontline communities at further environmental, social, and economic risk.”

https://www.commondreams.org/news/exim-papua-new-guinea-lng


US fossil fuel hypocrisy is betraying the planet

(Al Jazeera, Washington, 30 July 2023) While the president's rhetoric aligns with global climate promises, his administration has approved massive fossil fuel projects. Ahead of its Climate Ambition Summit in September, the United Nations is calling on global leaders to phase out fossil fuels. US President Joe Biden is painfully falling behind on this agenda and must urgently get back on track to maintain any credibility in these climate discussions. As we suffer through extreme heat in the US and across the globe, President Biden has been protecting fossil fuel profits instead of people.  From the Willow Project in Alaska to Gulf LNG exports, Biden props up dangerous oil and gas projects and the corporations that value their bottom line over our future... skipping important permitting processes meant to protect people and the environment, The latest reports from the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) show that maintaining a 50 percent chance of limiting global warming to 1.5 degrees Celsius (34.7 degrees Fahrenheit) requires an immediate end to investments in new coal, oil and gas production and hazardous liquified fossil gas (LNG) infrastructure. While Canada, the United Kingdom, and France have published policies keeping their promises to stop international funding for fossil fuels, the United States has refused to publish a policy.

https://www.aljazeera.com/opinions/2023/7/30/bidens-fossil-fuel-hypocrisy-is-bet...


The BRICS come of age [But what role for ECAs?]

(Project Syndicate, Cairo, 18 August 2023) by Hippolyte Fofack, Chief Economist and Director of Research at the African Export-Import Bank (Afreximbank). Given the BRICS’ economic success, more than 40 countries have shown an interest in joining the group and 22 have formally applied for membership. Expansion, trade and investment facilitation will be high on the agenda of the group's summit scheduled for August 22-24 in Johannesburg. They include many issues on which the bloc’s views diverge from those of the G7, such as sustainable development, global governance reform (especially reform of the IMF), and de-dollarization. An enlarged grouping could deepen trade and settlement in local currencies, accelerate de-dollarization, and lead the transition to a more multipolar world. The economic potential of Brazil, Russia, India, and China, the group – called the BRICS since the addition of South Africa – contributes more to global GDP (in purchasing-power-parity terms) than the G7. Since 2014, Russia’s trade with G7 countries has fallen by more than 36%, owing to unprecedented Western sanctions, while its trade with the other BRICS has increased by more than 121%. The International Monetary Fund forecasts that China and India alone will generate about half of global growth this year.  With geopolitical tensions running high, and the weaponization of the dollar for national-security purposes continuing to escalate, the BRICS have taken on new significance, offering trade diversion and other relief to weaken the effectiveness of sanctions and fast-tracking the transition to a multipolar world. Read the Summit Declaration here.

https://www.project-syndicate.org/commentary/brics-annual-summit-could-lead-to-e...


EU’s €45bn plan to tackle Latam productivity woes

(Financial Times, London, 31 July 2023) The European Commission’s recently released EU–LAC Global Gateway Investment Agenda identifies 130 types of projects scattered across the region in which it plans to inject €45bn by 2027. The roadmap targets the green transition, digitalisation, education and health, with projects in Chile, Colombia and Panama. “This is an enormous opportunity for Latin America to increase [European] partnerships, and receive not just investment but also technology transfer and finance to transform these areas,” says José Manuel Salazar-Xirinachs, executive secretary of the UN’s Economic Commission for Latin America and the Caribbean (ECLAC). The €45bn programme consists of funds and guarantees provided by the EU, its member states, development finance institutions and export credit agencies.

https://www.fdiintelligence.com/content/news/eus-45bn-plan-tackles-latams-produc...


Feet to the Fire: Big Oil and the Climate Crisis

(Energy Portal EU, London, 12 August 2023) The transition to clean energy is sparking intense debates as the climate crisis worsens. While cities, universities, and pension funds across the U.S. have divested from fossil fuels, the divestment movement has faced obstacles. In California, a bill that would have required public pension funds to stop investing in the largest oil, gas, and coal companies was killed for the second consecutive year. The bill’s rejection was due to concerns over its impact on workers’ retirement funds. Banks also play a significant role in the climate crisis by financing governments in dealing with its effects and lending to fossil fuel companies. The frequency and intensity of climate-induced emergencies have overwhelmed scientists and journalists, calling for a new approach to disaster reporting. Instead of treating each disaster as unrelated, climate change should be recognized as the connecting factor among them. Germany recently released a draft policy for the provision of guarantees in the energy sector, contradicting its pledge to end international financing for coal, oil, and gas projects made at COP26. Germany’s export credit agency’s policy raises questions about its commitment to ending fossil fuel funding.

https://www.energyportal.eu/news/as-climate-crisis-worsens-debate-heats-up-over-...


India's Reliance Jio ties up $2.2 bn funding from Sweden's EKN for 5G equipment

(Business India Today, Noida, 6 August 2023) "Reliance and its subsidiary Jio Infocomm JIL tied up its first ever Swedish Export Credit Agency (EKN) supported facilities of $2.2 billion equivalent making it the largest cover ever provided by EKN for a deal to a private corporate globally," Reliance Industries said, adding that the proceeds of the facilities shall be utilised to finance the equipment and services in relation to JIL's pan-India 5G roll out. Jio has committed to an investment of Rs 2 lakh crore to fulfill its ambitious pan-India 5G rollout plan, the company said. Jio started 5G network rollouts in October 2022. "Jio has launched its True 5G services across 2,300-plus cities/towns as of March 2023 and targets to achieve pan-India coverage by December 2023," the annual report said.

https://www.businesstoday.in/latest/corporate/story/reliance-jio-ties-up-22-bn-f...


New Chinese growth drivers sought to boost exports amid weak global demand

(China Daily, Beijing, 9 August 2023) China's foreign trade grew steadily in the first seven months of the year but exports in July declined at a steeper-than-expected pace amid subdued global consumer demand, which highlights the need to roll out stronger policy steps to further boost the country's foreign trade, experts said on Tuesday. Li Dawei, researcher at the Chinese Academy of Macroeconomic Research's Institute for International Economy, said the authorities should offer services such as exchange rate hedging, process export tax rebates faster, expand the scale of export credit insurance services and enhance customs clearance to foster new drivers of export growth amid falling global demand for the country's traditional export products such as electronic items, clothing and footwear.

https://www.chinadaily.com.cn/a/202308/09/WS64d25f68a31035260b81af93.html


Sinosure’s Country Blacklist?

(Lexology, London, 22 August 2023) China’s Sinosure, a major (virtually the only) provider of export credit insurance to China’s factories, plays an instrumental role in facilitating trade between Chinese suppliers and international buyers. However, there’s an under-discussed aspect of their operations that is detrimental for certain countries: the so-called “country blacklist”. Sinosure has a well-documented history of denying (via its infamous blacklist) export credit insurance to companies with outstanding payments to Chinese suppliers. One list outrightly refuses insurance for buyers hailing from certain countries. Though it’s tricky to pinpoint the exact countries on this list, via discussions with industry stakeholders, past Sinosure employees, and clients I have compiled the below list of probable countries allegedly sidelined by Sinosure. The accuracy of this list is dubious. It is not based on any official Sinosure documentation or communications. However, the persistent rumors surrounding this list should not be ignored.

https://www.lexology.com/library/detail.aspx?g=f8a9624c-1490-4f51-bf60-6fee972bd...


Russian ECA plans special loans for African companies

(Punch Nigeria, Lagos, 29 July 2023) President Vladimir Putin of Russia says his country will offer preferential loans to enable African companies to buy industrial goods from the European country and enjoy after-sales services. He said his government was devising a leasing mechanism tailored for Africa, and that the Russian Agency for Export Credit and Investment Insurance would provide insurance for the planned preferential loans. The Russian leader made the disclosure during the ongoing Russia-Africa Summit and Russia-Africa Economic and Humanitarian Forum holding in St. Petersburg, Russia. According to him, the Russia government is also about to establish a dedicated investment fund for co-financing infrastructure projects in the African continent.

https://punchng.com/russia-plans-special-loans-for-nigerian-companies-others/


Four Emirati women lead UAE’s powerful financial institutions

(Gulf Business, Dubai, 28 August 2023) With a career spanning nearly two decades, Raja Al Mazrouei joined Etihad Credit Insurance (ECI) as a board member in January 2022 and became the export credit agency’s managing director and CEO in November 2022 and January 2023, respectively. Other women recognized on Emirati Women’s Day include: Hana Al Rostamani, Group CEO, First Abu Dhabi Bank; Rola Abu Manneh, CEO, Standard Chartered UAE and Maryam Buti Al Suwaidi, CEO, Securities and Commodities Authority

https://gulfbusiness.com/4-emirati-women-in-the-financial-services-sector/


UKEF to provide £192m loan guarantee to boost Ukraine nuclear capabilities

(Sky News, London, 23 Augut 2023) Energy secretary Grant Shapps has visited Ukraine to announce fresh financial support for its nuclear fuel supply in a bid to end its reliance on Russia. The UK will provide a £192m loan guarantee to Ukraine's national nuclear company, Energoatom via the UK's export credit agency, UK Export Finance. Through the deal, UK-headquartered Urenco will supply Energoatom with uranium enrichment services that are vital for nuclear fuel, with nuclear power generating over half of the country's electricity. The government hopes this will strengthen Ukraine's energy security and help end the country's dependence on nuclear services and nuclear fuel from Russia, as well as further isolate Vladmir Putin.

https://news.sky.com/story/uk-to-provide-192m-loan-guarantee-to-boost-ukraine-nu...


Arafura Rare Earths offered EDC and Euler Hermes support

(AUManufacturing, No Address Provided, 31 July 2023) Arafura Rare Earths pushed ahead with engineering work and construction of its giant Nolans rare earths project in the Northern Territory in the latest quarter despite a softening market for the critical metals. Arafura has received a letter of interest from Canadian export agency Export Development Canada for the provision of up to US$300 million in debt financing. Nolans has support from the Northern Australia Infrastructure Facility of $150 million and in principle support for a loan guarantee of up to US$600 million from German export credit agency Euler Hermes.

https://www.aumanufacturing.com.au/arafura-pushes-ahead-despite-fall-in-rare-ear...


Euler Hermes to back €1.29bn financing for Angolan solar infrastructure development

(Bizcommunity, Cape Town, 31 July 2023) Standard Chartered plans to provide the Angolan Ministry of Finance €1.29bn in financing to construct solar photovoltaic electricity distribution infrastructure. The financing is backed by German export credit agency Euler Hermes. Of the €1.29bn total, €1.2bn is supported through Euler Hermes and the remaining €0.09bn is a commercial loan. The loan will fund 48 hybrid photovoltaic generation systems with energy storage that act as ‘mini grids’ and operate autonomously and aim to provide access to 100% renewable electricity for communities not connected to the national electricity grid.

https://www.bizcommunity.com/Article/7/704/240581.html


EDC trying to reclaim $347 million insurance payout to Suncor linked to Libya unrest

(Bowen Island Undercurrent, BC, 2 August 2023) The federal government is trying to reclaim nearly $350 million in insurance paid to Suncor Energy Inc. by Export Development Canada in the wake of political unrest in Libya. The oil giant claimed $300 million in risk mitigation payments for losses linked to Libyan energy assets after fighting between rival political factions spread to the country's oil crescent region in 2015, a Federal Court judge said in a ruling this week. The total — $347 million with interest — was determined by an arbitrator in 2019. But Export Development Canada, which insures against losses caused by political violence, argues that Suncor's oil production facilities still deliver returns for the Calgary-based company. The insurance claim was paid under a policy underwritten by Export Development Canada for Petro-Canada in 2006, which Suncor then came into following their merger in 2009.

https://www.bowenislandundercurrent.com/the-mix/feds-try-to-reclaim-347-million-...


What's New for July 2023

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Civil societies say Germany's plan for export credit guarantees violates climate commitments

(Reuters, Berlin, 25 July 2023) Environmental groups on Tuesday criticized Germany's draft policy on export credit guarantees as too vague and soft on financing for natural gas projects, as Berlin attempts a balancing act between climate protection and energy security. Germany supports exports by offering guarantees for non-payment caused by economic and political factors, helping companies to secure political backing for their projects and better financing terms. On Monday, the economy ministry published its first draft guidelines for such guarantees for the energy, transport and industry sectors, tying them to climate protection targets. The guidelines set three categories for future projects: a positive green for projects contributing to achieving climate targets that would be eligible for government support, a neutral white for projects that do not make a significant contribution to climate goals but would still receive support, and a climate-damaging red to be excluded from such guarantees. But the draft drew heavy criticism from environmental organizations, which argued that Germany was breaking its international commitment to ending public financing for fossil fuels by the end of 2022, by offering too many exemptions for natural gas projects. "These plans highlight the German governments' shameless disrespect of its international commitments and climate goals," Martin Kaiser, executive director of Greenpeace Germany, said. At the 2021 United Nations COP26 climate summit, 20 countries, including Germany, promised to stop public funding for overseas fossil fuel projects by the end of 2022. Environmental groups have raised concerns about Germany’s policy draft on export credit guarantees, stating that it is too vague and lenient regarding the financing of natural gas projects.

https://www.reuters.com/business/environment/germanys-plan-credit-guarantees-vio...


Biden breaks climate pledge again with new EXIM LNG approval

(Price of Oil, Washington, 18 July 2023) Last  Friday, the Export-Import Bank of the United States (EXIM) — the official export credit agency of the U.S.— insured USD 400 million in revolving credit facilities for global commodities trader Trafigura. The newly approved transaction will allow Trafigura Pte. to purchase liquefied natural gas (LNG) from U.S. exporters to sell primarily to European buyers. “It is alarming that Biden continues to break climate commitments to end international public finance for fossil fuels. Instead, he uses public money to prop up the dirty industry that fuels climate disaster and harms communities, while we suffer record breaking extreme heat. “Other countries like Canada, the UK, and France have kept their promise to end international public finance for fossil fuels, and are already shifting billions of dollars towards clean energy. There needs to be accountability for signatories like the Biden administration for going back on their word.”

https://priceofoil.org/2023/07/18/biden-breaks-climate-pledge-again-with-new-exi...


Italy’s SACE breaks climate promise with $500 million guarantee for Peru oil refinery

(Price of Oil, Washington, 11 July 2023) Italy’s export credit agency SACE has approved a $500 million guarantee in loans for the Talara oil refinery in Peru, once again breaking their commitment to end their international public finance for fossil fuels by the end of 2022. SACE is the biggest public financier of fossil fuels in Europe. Between 2016 and 2021, SACE supported EUR 13.7 billion in fossil fuels. A study by Oil Change International last year revealed that SACE is considering financing for international fossil fuel projects with emissions equivalent to more than 3 times Italy’s entire annual emissions. At the UN COP26 climate summit in 2021, 39 countries and financial institutions, including Italy, signed the Glasgow Statement, committing signatories to end their direct international public financing for fossil fuels by the end of 2022. Oil Change International’s Public Finance for Energy Database shows that G20 countries and the major multilateral development banks (MDBs) provided at least USD 63 billion per year in international public finance for oil, gas, and coal projects between 2018 and 2020. This is 2.5 more than their support for renewable energy.

https://priceofoil.org/2023/07/11/italys-sace-breaks-climate-promise-with-500-mi...


Who are the major financiers of Brazilian FPSOs?

(BN Americas, Santiago, 7 July 2023) Although the energy transition and ESG issues are gaining traction, many banks and credit export entities keep financing oil and gas undertakings, such as floating production storage and offloading units (FPSOs) ordered by Brazil’s federal oil firm Petrobras. FPSOs are used for the production and processing of hydrocarbons, and for the storage of oil. This situation will not change much as demand for hydrocarbons will remain and a significant portion of oil companies’ decarbonization capital expenses comes from oil and gas revenues. Furthermore, the geopolitical context, with the war in Ukraine and gas supply in Europe, has reignited energy security concerns. Meanwhile, financial products like green and sustainability linked bonds, developed to support companies that do not operate in totally green areas, do not yield higher returns. According to Daniela Davila, a partner at Vieira Rezende law firm, new FPSOs are mainly financed by Asian financial institutions (banks and leasing houses) and export credit agencies from countries such as China, Japan, South Korea and Singapore, where shipyards that build the hulls/modules of the units are located. Some banks, such as BNP Paribas and HSBC, have announced their exit from this industry, while New York-based Nordea has shown less appetite for oil and gas. On the other hand, traditional offshore players like Norway’s DNB or Germany’s Deutsche Bank continue to support the sector. CNOOC and CNODC are also Petrobras’ partners in the Mero field, which will receive the Sepetiba unit this year and Alexandre de Gusmão in 2025. Banks from Japan, like Sumitomo Mitsui Banking Corporation and Japan Bank for International Corporation, often work with Japan's Modec, which signed several charter contracts of FPSOs under construction with Petrobras and one for Equinor’s Bacalhau field. Among other financial institutions with tradition in FPSO financing are the UK’s Standard Chartered Bank; DBS Bank, United Overseas Bank, Clifford Capital and Oversea-Chinese Banking Corporation from Singapore; China Investment Corporation; Korea Development Bank (South Korea); Maybank and CIMB (Malaysia); Société Générale and Natixis (France); and Mitsubishi UFJ Financial Group (Japan). Export credit agencies in the sector include China’s Sinosure, Nippon Export and Investment Insurance (Japan) and Sace (Italy).

https://www.bnamericas.com/en/features/who-are-the-major-financiers-of-brazilian...


Coal-project financing outside of China hits 12-year low

(Resiliance, US-UK-AU, 11 July 2023) The global energy crisis fueled by Russia’s invasion of Ukraine sparked widespread fears of a “return to coal” – yet, to date, there is scant evidence of this. Indeed, in the world of project financing, any supposed rebound has been illusory. The financing of coal power outside of China has now hit its lowest point since 2010, according to our latest figures in the Global Coal Project Finance Tracker (GCPFT). We found that for every $1 in coal project lending that reached financial close in 2022, another $14 earmarked for previously proposed projects was stopped. But, despite a myriad of economic, political and social headwinds that have slowed funding to the coal sector, project lending continues to display resilience, particularly in southeast Asia.

https://www.resilience.org/stories/2023-07-11/coal-project-financing-outside-of-...


AFRICAN NGOS URGE END OF SUPPORT FOR FOSSIL FUEL PROJECTS IN AFRICA AND SIGN THE GLASGOW STATEMENT

(Environment Governance Institue, Seeta Uganda, 18 June 2023) Thirty four African environmental and human rights civil society organisations and 13 international supporters wrote the African Export-Import Bank (Afreximbank) in anticipation of the 30th Afreximbank Annual General Meeting (AGM) from 18th to 21st June 2023 to urge stronger environmental commitments and actions within the financial sector, noting that the impacts of climate change are increasingly evident across the continent, with vulnerable communities and ecosystems bearing the brunt of these effects, and yet financial institutions such as Afreximbank have continued to invest in the further expansion of fossil fuel projects, thus accelerating the climate emergency. Specifically, they note with great concern that across the region, Afreximbank has continued to support a list of finance fossil fuel projects, which contravenes Article 2.1(c) of the Paris agreement signed by all 54 African countries which calls on parties to make finance flows consistent with a pathway towards low greenhouse gas (GHG) emissions and climate-resilient developments.

https://egiuganda.org/wp-content/uploads/2023/06/African-CSOs-Memo-to-Afriexim-B...


Guarantees for 1st Batch of Korea’s Arms Exports to Poland limit 2nd batch due to 40% limit on equity capital

(Business Korea, Seoul, 4 July 2023) According to the Export-Import Bank of Korea’s loan and guarantee data by item and country on July 3, the state-run bank provided 488.2 billion won (US$375.7 million) in financial support in the form of loans and guarantees to the defense sector in the first five months of this year. The total amount of loans and guarantees provided by Korea Eximbank to all industries in the same period was 31.8 trillion won. Export finance for Korea’s defense exports accounted for 1.6 percent of the total export finance provided by Korea Eximbank this year. According to the Enforcement Decree of the Export-Import Bank of Korea Act, the state-run lender cannot provide credit to the same borrower for more than 40 percent of its equity capital. Korea Eximbank will thus be unable to afford to give additional loans and guarantees to Poland if it provides US$5 billion in support for the first batch. The amount of loans and guarantees provided by Korea Eximbank in connection with purchases of weapons signed from 2018 to 2021 ranged from 100 to 500 billion won per year. But the figure surged to the two trillion won range in 2022. Guarantees with Poland accounted for most of the financial support, in the US$2 trillion range. In addition to Poland, Korea Eximbank provided defense-related financial support to the United Arab Emirates (UAE), Egypt, and Indonesia in 2022.

http://www.businesskorea.co.kr/news/articleView.html?idxno=117705


OECD amends export credit agency arrangement to boost green trade

(Institue of Export & Int'l Trade, london, 20 July 2023) The Organisation for Economic Co-operation and Development (OECD) has modernised the terms of its Arrangement on Officially Supported Export Credits to allow export credit agencies (ECAs) covered by the arrangement, which includes UKEF in the UK, to extend more generous incentives for climate-friendly transactions. The OECD describes the Arrangement as a “gentlemen’s agreement” between participants, which include Australia, Canada, the EU, Japan, Korea, New Zealand, Norway, Switzerland, Turkey, the UK and the US. Under the new rules, UKEF will now be allowed to offer better or longer repayment terms and more flexible finance structures for more renewable and green transactions. The new OECD arrangement follows a proposal from EU countries to do more to encourage green trade and climate-friendly transactions. It includes an expansion of the scope of green or climate-friendly projects eligible for longer repayment terms (eligible under the “Climate Change Sector Understanding” or CCSU). These include projects related to environmentally sustainable energy production; CO2 capture, storage, and transportation; transmission, distribution and storage of energy; clean hydrogen and ammonia; low emissions manufacturing; zero and low-emission transport; and clean energy minerals and ores.

https://www.export.org.uk/news/646406/OECD-modernises-export-credit-agency-arran...


Korea Eximbank prepares ECA Version 2.0 to boost exports

(Pulse News, Soeul, 24 July 2023) The Export-Import Bank of Korea (Korea Eximbank) is gearing up to upgrade its traditional model of financial support for promoting exports of Korean companies to a new level with the introduction of Export Credit Agency (ECA) Version 2.0. The  management strategy, termed ‘Beyond Core,’ aims to move beyond the core responsibility of supporting export expansion and evolve the ECA to adapt to the changing landscape. As part of this strategy, Korea Eximbank is considering activating limited investment operations. Similar to Japan Bank for International Cooperation (JBIC) and Export Development Canada (EDC), which have set up investment-specific subsidiaries for development finance in developing countries

https://pulsenews.co.kr/view.php?year=2023&no=562866


Piyush Goyal meets bankers on export credit to MSME exporters aiming to achieve $1 trillion merchandise exports

(India Times, New Delhi, 30 June 2023) Minister of Commerce and Industry Piyush Goyal on Wednesday urged Indian banks to provide MSMEs with improved and inexpensive loans in order to meet the aim of 1 trillion dollars in product exports. According to the official statement, the meeting was convened by the Department of Commerce in coordination with Export Credit Guarantee Corporation Limited, (ECGC) in New Delhi. The Commerce and Industry Minister also mentioned at the meeting that the ECGC might look into expanding the programme that was proposed for nine banks to all banks in order to improve the export credit offtake for MSME Exporters. The Commerce and Industry Minister further informed that in the next four months, all the ECGC services would be digitised so that physical interaction can be minimised, it added.

https://economictimes.indiatimes.com/small-biz/trade/exports/insights/piyush-goy...


£3.5bn UKEF support given to UK manufacturing, £1.1bn to construction in 2022/23

(PES Media, Rochester, 5 July 2023) UK Export Finance (UKEF) has published its annual results for 2022-23, which show the government’s export credit agency provided £3.5bn in new, direct support for UK manufacturing exporters in the last 12 months. The financing has directly supported up to 34,000 jobs in the sector. Overall, UKEF provided £6.5bn in new direct support to UK exporters in 2022-23. The financing, provided through loans, guarantees and insurance policies. UKEF spent £1.1bn supposedly supporting the UK construction sector last year.

https://www.pesmedia.com/35bn-support-given-to-uk-manufacturing-industry-by-ukef


Cedar Rose reaffirms its longstanding partnership with Sinosure

(ZAWYA, Dubai, 11 July 2023) Cedar Rose, a Cyprus and Dubai based corporate data, credit, risk and compliance firm, has reaffirmed its longstanding partnership covering over 25 years of relationship with Sinosure, a prominent Chinese state-owned enterprise responsible for export credit insurance. Cedar Rose's services play a crucial role in enabling comprehensive risk assessments for Sinosure. By leveraging Cedar Rose's Company Credit Reports and analysis services, Sinosure gains access to a wealth of data, including company identification, structure, and financial information. These services are obtained through Cedar Rose's API, with a particular focus on the Middle East and North Africa (MENA) region. Antoun Massaad, Co-Founder and CEO of Cedar Rose stressed that “The partnership between Cedar Rose and Sinosure has proven valuable in de-risking trading activities, supporting Sinosure’s risk management practices”.

https://www.zawya.com/en/press-release/companies-news/cedar-rose-reaffirms-its-l...


India's ECGC may permit Sri Lanka to repay debt over 12 years

(MINT, New Delhi, 6 July 2023) India plans to allow Sri Lanka up to 12 years to repay its debt to help ease the financial burden on the island-nation, India’s Export Credit Guarantee Corporation (ECGC) Ltd’s chairman-cum-managing director M.Senthilnathan said. Sri Lanka, facing its worst economic and political crisis in over seven decades, owes $7.1 billion to bilateral creditors— $3 billion owed to China, $2.4 billion to the Paris Club and $1.6 billion to India. Senthilnathan added that the National Export Insurance Account, managed by the ECGC, has received close to ₹4,500 crore worth of claims from exporters facing default in countries such as Sri Lanka, Zambia, Suriname and Ghana which faced extreme economic hardships after covid-19 and the Ukraine war. China has so far not joined the common platform of negotiators on Sri Lanka’s debt restructuring, though it has joined as an observer. In response to Sri Lanka’s request for long-term relief from major creditors like India, Japan, and China, the Chinese Exim Bank has agreed to grant Sri Lanka a two-year moratorium. It said it would support the country’s efforts to secure a $2.9 billion loan from the International Monetary Fund according to a report by Reuters.

https://www.livemint.com/economy/india-plans-to-extend-repayment-period-for-sri-...


UKEF is not building a multimillion pound railway line in Turkey

(Full Fact, London, 26 July 2023) Earlier this week Greater Manchester mayor Andy Burnham tweeted a screenshot of a UK government press release with the headline “UK announces £680m for new high-speed electric railway in Turkey”. Alongside the screenshot, Mr Burnham tweeted “So we can’t afford to keep our own ticket offices open - but we can afford to build a new line in Turkey?” Mr Burnham’s suggestion that the UK is financing a new railway line in Turkey is misleading—the £680 million figure used in the government press release refers to a loan provided by three banks (J.P. Morgan, ING Bank and BNP Paribas) which has been underwritten by the UK government’s export credit agency. The Italian, Austrian and Swiss export credit agencies are also providing reinsurance.

https://fullfact.org/online/uk-turkey-railway-loan/


‘Wolves’ Clever Opportunism: Securing £99m UKEF Loan’

(G3 Football, Hillside NJ, 14 July 2023) Wolverhampton Wanderers have recently made headlines for securing a £99 million loan from the UK government. While some may view this as a sign of financial trouble, experts argue that it is a shrewd move by the club. In this article, we will explore the details of the loan, why Wolves qualified for it, and its implications for the club. The loan was obtained by Wolves last year from the government agency UK Export Finance (UKEF). UKEF is the UK’s export credit agency and aims to ensure that no viable UK export fails due to lack of finance or insurance. Wolves qualified for the loan because they export a range of goods and services, including merchandise and football through the Premier League’s overseas broadcast rights.

https://g3.football/wolves-clever-opportunism-securing-99m-gov-loan/


What's New for June 2023

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • How Major Economy's ECAs are Breaking their own Climate Change Pledges
  • OECD allows support for fossil-based technologies under agreed ‘climate incentives’
  • Norway's Eksfin accused of ‘climate hypocrisy’ for financing Turkish gas field
  • UK's top court rejects Friends of the Earth’s appeal over government’s funding for Mozambique LNG project
  • Indonesia's Pertamina reaches $3.1 billion ECA and bank financing deal for Balikpapan oil refinery
  • SACE signs agreement with Saneg for methanol-to-olefin gas chemical complex
  • Mercuria closes deals worth over US$5bn including first ECA backing by SACE
  • SBM Offshore completes US$1.615 billion financing of Alexandre de Gusmão offshore Brazil FPSO
  • EU in talks over export credit facility for ECAs, banks
  • Berlin loosens requirements for Ukraine export guarantees
  • Ukraine axes ban on ECA-backed loan repayments
  • Japan’s NEXI acquires stake in African Trade Insurance Agency
  • African sovereign debt poses challenges for ECA activity

How Major Economy's ECAs are Breaking their own Climate Change Pledges

(Byline Times, London, 16 June 2023) OECD countries are continuing to pour tens of billions of pounds into fossil fuel projects, despite their obligations to switch to clean energy sources. Advanced economies are breaking their own climate change obligations by investing massively in fossil fuels rather than switching to clean energy sources, according to a landmark new report. The OECD’s export finance initiatives are in contravention of internationally-determined climate change obligations. In 2021, 39 governments signed the Clean Energy Partnership at the COP26 conference in Glasgow, an agreement which committed to “driving multilateral negotiations in international bodies, in particular in the OECD, to review, update and strengthen their governance frameworks to align with the Paris Agreement goals”. Yet despite 52% of OECD countries having signed the Partnership agreement, fossil gas received 30% of all OECD export finance between 2018 and 2020. The report confirmed that “despite long standing commitments to align financial flows with climate goals, public finance and, in particular, export finance remains skewed in favour of fossil energy”.

https://bylinetimes.com/2023/06/16/how-major-economies-are-breaking-their-own-cl...


OECD allows support for fossil-based technologies under agreed ‘climate incentives’

(Price of Oil, Paris, 23 June 2023) The Organisation for Economic Co-operation and Development (OECD) recently agreed on terms and conditions for climate-friendly export financing as part of its revised Climate Change Sector Understanding (CCSU). While the agreement enables incentives for renewable energy projects like solar and wind, it also provides incentives for hydrogen and ammonia, including fossil gas derived hydrogen, and fossil fuel power plants with carbon capture and storage (CCS). The agreement does nothing to restrict oil and gas financing. The  OECD’s export credit agencies are  the world’s largest international public financiers of fossil fuels. Recent analysis by Oil Change International shows that OECD countries supported fossil fuel exports by an average of $41 billion from 2018 to 2020, almost five times more than their clean energy support ($8.5 billion) over the same period. As such, OECD Export Credit Agencies (ECAs) play a critical role in propping up high-emitting projects, such as LNG infrastructure, which in turn shapes our future global energy system. For example, OECD ECAs have supported 56 percent of new hazardous liquified gas (LNG) export terminal capacity built in the last decade. According to International Energy Agency (IEA) and Intergovernmental Panel on Climate Change (IPCC) scenarios, maintaining a 50% chance to limit global warming to 1.5°C requires an immediate end to investments in new oil, gas, and coal  production and LNG infrastructure. This underlines an urgent need for the OECD to, as called for by over 175+ CSOs, end export support for new fossil fuel projects.

https://priceofoil.org/2023/06/23/oecd-allows-support-for-fossil-based-technolog...


Norway's Eksfin accused of ‘climate hypocrisy’ for financing Turkish gas field

(Enviro News, Lagos, 9 June 2023) The Norwegian government has been accused of climate hypocrisy after it emerged that the government export credit agency, Eksfin, has approved finance for the Sakarya gas field in the Black Sea. The Sakarya gas field project, owned by Turkish Petroleum, a Turkish state-owned enterprise, is considered to contain “the largest gas reserves discovered in the Turkish Exclusive Economic Zone as well as in the Black Sea.” The field is set to continue production “until the field reaches its economic limit in 2057.” Norway has previously been criticised for being the last country in north-west Europe to not sign the Glasgow Statement, an agreement at the COP26 climate conference that commits signatories to end government-backed finance for international fossil fuel projects. Previous analysis of the Sakarya gas field by Oil Change International shows that the project will emit at least 140 million tonnes of carbon dioxide in its first phase. Norway’s annual emissions of 48.9 million tonnes (as of 2022) mean this project will emit nearly three times the annual emissions of the entire country. Campaigners are accusing the Norwegian government of inconsistency and hypocrisy. While Norway is a major donor to aid projects that help developing countries mitigate and adapt to climate change, it is also financing fossil fuel projects that make climate change worse.

https://www.environewsnigeria.com/norway-accused-of-climate-hypocrisy-for-financ...


UK's top court rejects Friends of the Earth’s appeal over government’s funding for Mozambique LNG project

(Upstream Online, London, 23 June 2023) The UK’s top court has thrown out an application by Friends of the Earth (FoE) to appeal a case it lost earlier this year against the government’s funding of TotalEnergies’ $20 billion Mozambique LNG project. FoE had argued in the Court of Appeal in January this year that the UK should not have provided export credit finance to the huge liquefied natural gas project because it went against the government’s climate change policy and failed to adequately take into account Scope 3 emissions from the scheme.

https://www.upstreamonline.com/energy-transition/uks-top-court-rejects-friends-o...


Indonesia's Pertamina reaches $3.1 billion ECA and bank financing deal for Balikpapan oil refinery

(Reuters, Jakarta, 24 June 2023) Indonesia's state energy company Pertamina (PERTM.UL) reached a $3.1 billion financing deal with a number of export credit agencies and commercial banks to fund the upgrade of its Balikpapan refinery, the company said on Saturday. The lenders include export credit agencies from South Korea, Italy and the United States, and 22 commercial banks. Pertamina will use the funds for the expansion of its Balikpapan oil refinery to a capacity of 360,000 barrels per day (bpd), from 260,000 bpd. Pertamina claims it will be able to produce more environmentally friendly fuels. [Oil Change International noted in May that US President Biden has broken a major G7 climate promise by financing this Indonesian oil refinery.]

https://www.reuters.com/business/energy/indonesias-pertamina-reaches-31-bln-fina...


SACE signs agreement with Saneg for methanol-to-olefin gas chemical complex

(Hydrocarbon Engineering, Surrey, 13 June 2023) Italy’s State Export Credit Agency (SACE) has signed a financial memorandum with Uzbekistan’s largest oil company, Saneg, concerning an innovative methanol-to-olefin gas chemical complex (GCC MTO), that is currently under construction in the Bukhara region of Uzbekistan. Masrur Shakirov, General Director of GCC MTO, said: “Italian financial and technical support have been crucial to the development of this facility from the very beginning. The new memorandum confirms Italy’s ongoing commitment to supporting GCC MTO, while providing substantial new credit facilities to Saneg from Italian financial institutions.” This is the second major agreement recently finalised concerning GCC MTO. On 25 May 2023, Gas Chemical Complex MTO Central Asia LLC signed an industrial gas processing agreement with Air Products to build a methanol production facility. Known as Methanol Island, the facility would have capacity of 1.34 million tpy, as part of the GCC MTO complex.

https://www.hydrocarbonengineering.com/petrochemicals/13062023/sace-signs-agreem...


Mercuria closes deals worth over US$5bn including first ECA backing by SACE

(Global Trade Review, London, 28 June 2023) Mercuria has secured over US$5bn in new and renewed financing facilities, including its first funding backed by an export credit agency (ECA). The global commodities trader, which focuses on energy products, metals and minerals, says it has closed three financing arrangements from a range of global banks. Among those is a €500mn (US$546mn) multi-currency facility guaranteed by Italy’s ECA Sace, to supply the country with natural gas and LNG. Mercuria group CFO says the deal is the trader’s first ECA-backed transaction and comes after Italy agreed to support a similar financing deal with Mercuria’s rival Trafigura for the supply of metals to the country. While both are import deals, they were struck under Sace’s Push Strategy, which aims to support Italian suppliers’ access to international markets by targeting large foreign buyers. Natixis, Société Générale, UBS and UniCredit are mandated lead arrangers on the facility while Abu Dhabi Commercial Bank is lead arranger. Mercuria Energy Group Ltd is a Cypriot-domiciled multinational commodity trading company active in a wide spectrum of global energy markets including crude oil and refined petroleum products, natural gas, power, biodiesel, base metals and agricultural products.

https://www.gtreview.com/news/global/mercuria-closes-three-financing-deals-worth...


SBM Offshore completes US$1.615 billion financing of Alexandre de Gusmão offshore Brazil FPSO

(Yahoo Finance, Brazil, 20 June 2023) SBM Offshore is pleased to announce it has signed the project financing of its floating production storage and offloading unit (FPSO) Alexandre de Gusmão for a total of US$1.615 billion. The project financing is provided by a consortium of 12 international banks with insurance cover from 3 international Export Credit Agencies. It will have a processing capacity of 180,000 barrels of oil and 12 million m3 of gas per day. The FPSO construction is progressing as per plan with the expected first oil in the second half of 2024. FPSO Alexandre de Gusmão is owned and operated by special purpose companies owned by affiliated companies of SBM Offshore (55%) and its partners (45%). The FPSO will be deployed at the Mero unitized field located in the Santos Basin approximately 160 kilometers offshore Rio de Janeiro in Brazil, under a 22.5-year lease and operating contract with Petróleo Brasileiro S.A. The Mero unitized field is operated by Petrobras (38.6%), in partnership with Shell Brasil (19.3%), TotalEnergies (19.3%), CNPC (9.65%), CNOOC (9.65%) and Pré-sal Petróleo S.A. – PPSA (3.5%), representing the Government in the non-contracted area. [Despite very extensive press coverage of the project, not one article mentions which 3 ECAs are providing insurance coverage.]

https://finance.yahoo.com/news/sbm-offshore-completes-us-1-165900363.html


EU in talks over export credit facility for ECAs, banks

(Global Trade Review, London, 19 June 2023) The EU is weighing the launch of an export credit facility that could reinsure member state export credit agencies (ECAs) and refinance commercial loans, as it seeks to arrest the relative decline in exports from the bloc to key overseas markets. The European Commission, parliament and member states are now in talks to devise a strategy on export credits following the publication last week of a feasibility study which recommended several steps the EU could take in the next three years. Policymakers are seeking to harness the financial might of ECAs and export-import banks across its 27 countries by aligning them to key EU strategies such as transitioning to green energy, overseas investment and competition with China and the US. The feasibility study, authored by independent consultants and launched by the Commission last year, lamented a 5% drop in the EU’s share of merchandise goods exports to high-risk third countries in the decade to 2020, and double-digit declines in the share of EU contractors in business in Africa, Asia and the Middle East. Exports to third countries prop up some 38 million EU jobs, according to the study. ECAs are widely used by contractors to insure and lower the cost of financing capital-intensive infrastructure projects in what are deemed to be high-risk markets for credit, which include major developing economies such as Turkey, Vietnam, South Africa, Nigeria and Pakistan.

https://www.gtreview.com/news/europe/eu-in-talks-over-export-credit-facility-for...


Berlin loosens requirements for Ukraine export guarantees

(Yahoo Finance, Berlin, 22 June 2023) The German government has loosened its requirements for export credit guarantees for companies doing business with Ukraine in an effort to shore up economic recovery in the country, the economy ministry said Thursday. Effective immediately, the application procedure will no longer require bank guarantees if the risk is justifiable, replacing a stricter case-by-case examination, the ministry said. It added that small- and medium-sized companies stood to benefit from the changes. "The simplified procedures that have now been decided will speed up many things," Economy Minister Robert Habeck said. In 2022, the German government secured goods and services worth 14.9 billion euros ($16 billion) with export credit guarantees. In 2021 - before Russia's full-scale invasion of Ukraine - the figure stood at 20.2 billion euros. Export credit guarantees for business with Russia and Belarus are no longer issued by the German government as a consequence of the war in Ukraine.

https://finance.yahoo.com/news/berlin-loosens-requirements-ukraine-export-090709...


Ukraine axes ban on ECA-backed loan repayments

(Global Trade Review, London, 19 June 2023) Ukraine’s central bank has lifted restrictions on domestic firms’ repayments on loans backed by foreign export credit agencies (ECAs), wagering that the move will help attract much-needed foreign investment and financing for imports. The National Bank of Ukraine slapped a wide-ranging ban on cross-border currency transfers and purchases of foreign currency last year, immediately after Russia’s invasion of the country. The prohibition included the repayment of principal and interest on loans extended by foreign lenders, a decision that contributed to most ECAs suspending coverage of Ukraine.

https://www.gtreview.com/news/europe/ukraine-axes-ban-on-eca-backed-loan-repayme...


Japan’s NEXI acquires stake in African Trade Insurance Agency

(Zawya, Dubai, 19 June 2023) Japan’s export credit agency, Nippon Export and Investment Insurance (NEXI), has acquired a stake in the African Trade Insurance Agency (ATI), a Pan-African guarantee institution, following a capital infusion of $14.8 million. The equity investment supports the cooperation between Africa and Japan under the Tokyo International Conference on African Development (TICAD), ATI said in a statement. “As Japan expands its foreign direct investments and footprint into Africa, its membership in ATI will not only improve our institution’s capacity to support trade and investment across the continent but will also attract more Japanese investors under the African Continental Free Trade Area (AfCFTA),” said ATI Chief Executive Officer Manuel Moses.

https://www.zawya.com/en/projects/industry/japans-nexi-acquires-stake-in-african...


African sovereign debt poses challenges for ECA activity

(TFX News, London, 31 May 2023) The spectre of increasing sovereign debt has the potential to swamp future export finance deals and projects in several African jurisdictions. The changes to the OECD Arrangement on officially supported export credit financing put forward in March this year has been ‘music to the ears’ of all those in the industry calling for fundamental reform. We expect to hear more detail from the OECD in July, but from the provisional announcement it looks like tenors on certain transactions will be extended and repayment schedules relaxed for deals in certain sectors, giving greater impetus to deals and projects in the energy transition arena as well as providing a boost to social infrastructure transactions. Many African markets are seen as being challenging largely because of a range of serious risks – and the main ones are often cited as: the debt trap, coups, civil war, terrorism and political risk. In fact, at a recent TXF conference I learned that there are currently 68+ armed conflicts taking place across Africa – when I had originally estimated 40. This announcement has been strongly welcomed by those working in emerging markets, and particularly those active in African markets where so much basic infrastructural and social project work is required ... and where ECA-backed finance will be key.

https://www.txfnews.com/articles/7551/African-sovereign-debt-poses-challenges-fo...


What's New for May 2023

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • CSOs condemn G7 leaders for dangerous backsliding on gas, breaching commitments to end fossil fuel finance
  • Ahead of OECD negotiations, report shows OECD export finance props up fossil fuels, blocking energy transition
  • OECD ECAs urged to scale up climate ambitions
  • 200 and counting – Global financial institutions committed to coal divestment has doubled in 3 years
  • 103 Canadian CSOs call for elimination of fossil fuel subsidies through a robust assessment framework
  • IFC announces it will stop clients funding new coal projects
  • China trails global financial firms in committing to end investments in coal projects
  • Export credit market shows strong growth: Berne Union
  • Heads of G7 Export Credit Agencies - Meeting Statement
  • Quad summit discusses ECA cooperation In Indo Pacific
  • Australian roundtable notes ECA support crucial to transition
  • EU greenlights Denmark’s export and investment fund
  • Tiwi Islanders protest Santos' Barossa gas project in Australia
  • EDC and Alstom support sustainable transport projects
  • UKEF and BAE reach deal over historic Iran weapons sales
  • Swedwatch:  The EU must urgently review its outdated policy on export credits

CSOs condemn G7 leaders for dangerous backsliding on gas, breaching commitments to end fossil fuel finance

(Oil Change International, Washington, 20 May 2923) G7 Leaders in Hiroshima concluded that there is “an important role” for “increased deliveries of LNG” and that “publicly supported gas investments can be appropriate” [i.e. by ECAs], jeopardizing the 1.5ºC warming limit and directly contradicting last year’s G7 commitment to end international public finance for fossil fuels by the end of 2022. The G7 endorsement of increased gas finance comes despite strong opposition. Leading up to the Summit, activists organized over 50 actions in 22 countries to urge Japan and fellow G7 countries to end their support for fossil fuels and to stop driving the expansion of gas and other fossil-based technologies, A majority of international public finance for fossil fuels is provided by OECD governed Export Credit Agencies – more than even Multilateral Development Banks – with 71% of export financing for energy going to oil and gas. OECD ECAs invested in 56% of new hazardous liquified gas (LNG) export terminal capacity built in the last decade (providing at least $81 billion total), helping drive the global fossil gas boom.  Overall, about 42% of all fossil fuel finance [comes] from ECAs under the OECD supported midstream infrastructure activities, such as pipelines, LNG ports, and shipping. At COP26, the 2021 global climate conference in Glasgow, 34 countries and 5 institutions pledged to end direct international public finance for unabated fossil fuels by the end of 2022 and prioritize their public finance fully for the clean energy transition. A regularly updated OIC briefing tracks implementation efforts and assesses whether countries are on track to keep their stop funding fossils promise.

https://priceofoil.org/2023/05/20/csos-condemn-g7-leaders-for-dangerous-backslid...


Ahead of OECD negotiations, report shows OECD export finance props up fossil fuels, blocking energy transition

(Price of Oil, Hiroshima, 20 May 2023) G7 Leaders in Hiroshima concluded that there is “an important role” for “increased deliveries of LNG” and that “publicly supported gas investments can be appropriate”, jeopardizing the 1.5ºC warming limit and directly contradicting last year’s G7 commitment to end international public finance for fossil fuels by the end of 2022. The G7 endorsement of increased gas finance comes despite strong opposition. Leading up to the Summit, activists organized over 50 actions in 22 countries to urge Japan and fellow G7 countries to end their support for fossil fuels and to stop driving the expansion of gas and other fossil-based technologies such as ammonia co-firing in coal-fired power plants. In their Leaders’ Communique, the G7 claim that “they are steadfast in their commitment to … keeping a limit of 1.5ºC global temperature rise within reach”. A true commitment to 1.5°C, however, requires the G7 to explicitly exclude continued investments in new upstream gas projects and Liquefied Natural Gas (LNG) infrastructure. Today’s G7 endorsement of increased gas investments came after a push from Japan and Germany, with Japan using its G7 Presidency to also promote other fossil fuel-based technologies such as hydrogen, ammonia and CCS. The G7 play a central role in enabling the global buildout of LNG infrastructure.

https://priceofoil.org/2023/05/20/csos-condemn-g7-leaders-for-dangerous-backslid...


OECD ECAs urged to scale up climate ambitions

(Global Trade Review, London, 24 May 2023) The export credit agencies (ECAs) of OECD countries should take more ambitious action to protect the climate after pouring 77% of their spending into fossil fuel projects between 2018 and 2020, a campaign group has argued. OECD members pumped an annual average of US$41bn into fossil fuel exports during the three-year period, totalling almost five times the amount of financing provided for clean energy, according to NGO Oil Change International. The report uses energy finance data for OECD members with ECAs which held assets above US$1bn between 2018 and 2020. “This directly contradicts internationally agreed climate goals, including the Paris Agreement objective to align financial flows with the low-carbon energy transition,” says the organisation, which campaigns for an end to public financing for polluting energy sources. ECAs have come under increased scrutiny for their role in fossil fuel finance in recent months, and campaign groups called for strict curbs on such financing as part of the  modernisation of the OECD framework on export credits, announced earlier this year. OECD Arrangement participants are meeting in Paris this week to begin drafting the text of the updated framework. It will likely result in an expansion of the types of projects classed as climate-friendly to include clean hydrogen and ammonia, low emissions manufacturing, zero and low emissions transport, and clean energy minerals and ores. The OECD Arrangement’s announcement of the modernisation package did not include any measures on limiting oil and gas support.

https://www.gtreview.com/news/sustainability/oecd-ecas-urged-to-scale-up-climate...


200 and counting – Global financial institutions committed to coal divestment has doubled in 3 years

(IEEFA, Lakewood OH, 4 May 2023) In its latest report, the Institute for Energy Economics and Financial Analysis (IEEFA) has found that globally significant financial institutions (FIs) are committing to divesting away from coal at a quicker rate as climate change becomes a priority globally. It took almost six years for the first 100 institutions to adopt coal exclusion policies, but since then the number has doubled in just over three years. “Interestingly, it’s not the largest asset managers who are leading the way. It’s more the medium- sized ones who recognise their duty to clients. This is a reflection that the market is learning and learning fast amid regulators getting tough on greenwashing. Collectively, the whole finance ecosystem is working together to find where the issues are,” said IEEFA’s debt markets leader for Asia Pacific Christina Ng. While several large global asset managers have established formal coal exit policies, the three largest asset managers managing assets worth US$20 trillion have either formulated weak coal exit policies or have no policy at all. Overall, there are 114 FIs in Europe, 53 in Asia-Pacific, 27 in North America, 6 in Africa, and 2 in South America. European financial institutions are leading the way in coal divestment with stricter policies than those in other regions. A total of 22 FIs in the emerging economies have also established coal divestment policies, including South Africa, Malaysia, China, Turkey, India, and the Philippines. Interestingly these countries are largely reliant on coal for electricity.

https://ieefa.org/articles/200-and-counting-global-financial-institutions-commit...


103 Canadian CSOs call for elimination of fossil fuel subsidies through a robust assessment framework

(Environmental Defence, Ottawa, 15 April 2023) In a letter to Prime Minister Trudeau, a broad range of Canadian organizations note that it has been over a decade since Canada first committed to ending inefficient fossil fuel  subsidies. Instead of fulfilling this promise, the Government of Canada has continued to  provide billions of dollars to oil and gas companies year after year. Now, the federal government has a critical opportunity to correct its track record and become a global leader in its efforts to eliminate fossil fuel subsidies. Noting the much-anticipated Assessment Framework for Fossil Fuel Subsidies has the potential to set an example for the rest of the world – if the framework delivers the highest possible ambition. Conversely, a weak framework could damage Canada’s credibility in international fora and set a dangerous precedent for other countries. Canada should use the World Trade Organization Agreement on Subsidies and Countervailing Measures Article 1.1 definition of subsidies to ensure all relevant measures are captured in the review. The definition of subsidy used must ensure that all tax and non-tax measures that benefit fossil fuel producers are captured in the review. Canada spent $18B on financial supports for the fossil fuel industry last year.

https://docs.google.com/document/d/1vbu2Ge6gtljKwjiTPqMnVjBXO8ySsBazmoRjxh2bv60


IFC announces it will stop clients funding new coal projects

(IFC, Washington, no date 2023) One of the key goals of the Paris Agreement is to ensure that financial flows are consistent with a pathway toward low emissions and climate resilient development. In 2020, The International Finance Corporation (IFC) the World Bank’s private sector arm launched the Green Equity Approach (GEA) to help our financial institution (FI) clients continue to do business in a changing world. This year (2023) IFC, is taking the next step toward alignment with Paris Agreement ambitions by introducing an update to the GEA under which IFC will start requiring a commitment from FI clients to not originate and finance any new coal projects. Previous policy allowed the IFC’s financial clients to support new coal projects as long as they exited coal by 2030, but new update explicitly rules out new coal. However Re-Course notes that the IFC still has a fossil fuel addiction. In the year when the Multilateral Development Banks (MDBs) are finally aligning their portfolios with the Paris Agreement, over seven years after the Agreement itself was made, it is time for change. [ECA Watch can only hope the OECD and all ECAs could move quickly in this direction for all fossil fuel project credits and insurance.]

https://www.ifc.org/wps/wcm/connect/industry_ext_content/ifc_external_corporate_...


China trails global financial firms in committing to end investments in coal projects

(South China Morning Post, Hong Kong, 4 May 2023) The number of financial institutions globally that have committed to coal divestments has doubled in the past three years, but it remains negligible in China, according to a new IEEFA study. While more than 200 “globally significant” companies now have formal policies restricting investment in coal mining or coal-fired power projects, just three financial institutions from China have established a formal coal policy,

https://www.scmp.com/business/banking-finance/article/3219254/climate-change-chi...


Export credit market shows strong growth: Berne Union

(Reinsurance News, Brighton, 15 May 2023) Berne Union, the global association for the export credit and investment insurance industry, has reported that its market showed “strong growth” across business lines in 2022 and a fall in claims paid overall. Highlights from the year’s data show that the export credit industry supported $2.83 trillion of cross-border trade and investment with an additional $68.6bn in non-cross-border support for exporters. Berne Union notes that growth has been supported by the return of significant transactions in the transportation sector as well as a large expansion of manufacturing sector project. The report notes that renewable energy transactions also continue to increase and are close to doubling 2019 levels, while commitments for natural resources continue to decline now at just 33% of their 2019 levels. Total claims paid fell from $9 billion to $7.6 billion over 2022, following a notable drop in MLT transportation claims which had spiked in the first stages of the pandemic. [However as noted in other articles of this issue of What's New, ECAs poured 77% of their spending into fossil fuel projects between 2018 and 2020, making claims for increased renewable energy transactions almost irrelevant! ]

https://www.reinsurancene.ws/export-credit-market-shows-strong-growth-berne-unio...


Heads of G7 Export Credit Agencies - Meeting Statement

(UK Government, Rome, 19 May 2023) The leaders of official Export Credit Agencies (ECAs) of G7 Countries - Canada, France, Germany, Italy, Japan, United Kingdom and the United States of America – met on May 16th in Rome, hosted by SACE, the Italian ECA. The meeting provided a framework for an open and constructive exchange around topics of relevance for the financing of global trade, from a practical and policy perspective. Discussions centred on recent business trends in the ECA industry, new instruments implemented to address the challenges currently faced by national exporters, policies and initiatives related to climate, as well as on joint support for the reconstruction process in Ukraine:

https://www.gov.uk/government/news/heads-of-g7-export-credit-agencies-meeting-st...


Quad summit discusses ECA cooperation In Indo Pacific

(Deccan Herald, Bangalore, 21 May 2023) The leaders of the US, Japan, Australia and India met for the Quad Summit on the sideline of the G7 conclave in Hiroshima and agreed to work on a Memorandum of Cooperation (MOC) between the export credit agencies of the governments to strengthen collaboration for the promotion of trade, financing of trade-enabling projects, economic development, and knowledge-sharing with respect to the export of goods and services. The MOC underscores the importance of economic development of the Indo-Pacific region and of increasing business opportunities, they said. "We emphasise the importance of adherence to international law, particularly as reflected in the UN Convention on the Law of the Sea, and the maintenance of freedom of navigation... including those in the East and South China Seas,” the leaders stated in a joint statement, tacitly hitting out at China. India on Saturday joined Japan, Australia and the US to denounce China’s “destabilising and unilateral actions” to change the status quo in the Indo-Pacific region and its move to militarise the disputed features in the East and the South China sea.

https://www.deccanherald.com/national/quad-denounces-china-s-destabilising-actio...


Australian roundtable notes ECA support crucial to transition

(Infrastructue Investor, Sydney, 19 May 2023) Australia’s infrastructure sector has centred on privatisations for decades. But a rapidly changing world calls for more greenfield development. Australia’s transition prospects have recently been boosted by the country’s most significant emissions reduction legislation in more than a decade. Total emissions from major industrial facilities must now be cut and not just offset. This is deemed critical to meeting Australia’s net-zero pledge, which will require a 45% reduction in emissions by 2030. Danny Latham, head of Australia and New Zealand at Igneo Infrastructure Partners notes: “We need something like $400 billion of investment in renewable generation and associated transmission links to get anywhere near 2050 net-zero targets". Aaron Ross of rhw ANZ Banking Group notes that one way the Australian government could better support technologies associated with the transition is through export credit. “The Danish and Korean export credit agencies EKF, KEXIM and K-Sure have been providing significant support to help develop wind and battery manufacturing projects, for example,” he says. “We have seen similar things in Taiwan, Southeast Asia and Europe generally. There are opportunities for Australia too, in terms of accessing the Export Credit Agency market as an additional source of capital to fund the transition.”

https://www.infrastructureinvestor.com/australia-roundtable-fit-for-the-future/


EU greenlights Denmark’s export and investment fund

(ScandAsia, Bangkok, 18 May 2023) The European Commission has approved Danish measures to set up Denmark’s Export and Investment Fund. The fund has a total estimated value of over €4 billion. It aims at supporting economic development, competitiveness, innovation, and growth for Danish companies. Denmark notified the commission its plans to set up the fund, with an initial capital of up to €807 million. The fund will be established as a new, fully state-owned entity gathering three existing state-owned entities: the Danish Growth Fund, the EKF Denmark’s Export Credit Agency and the Danish Green Investment Fund.

https://scandasia.com/eu-greenlights-denmarks-export-and-investment-fund/


Tiwi Islanders protest Santos' Barossa gas project in Australia

(Upstream, Perth, 29 May 2023) Australian oil giant Santos denied claims of human rights abuses against Indigenous Australians relating to domestic gas and LNG projects planned or under development that have been alleged to some of the company’s investors and financiers. Equity Generation Lawyers, which bills itself as specialists in Australian climate change law, early last month filed human rights grievances against financial institutions supporting the Barossa gas project located in waters off northern Australia. Those financial institutions included Australia’s ANZ and Westpac, DNB Bank of Norway, Singapore’s DBS Bank and three Japanese banks. In tandem, export credit agencies in Japan and South Korea that are set to provide financial support to Santos’ project partners from those nations also received letters of complaint. The company has more than 90 agreements in place across Australia that relate to native title, Aboriginal land rights and cultural heritage management, involving six Aboriginal Land Councils and 23 Traditional Owner groups.

https://www.upstreamonline.com/people/santos-rejects-human-rights-abuses-relatin...


EDC and Alstom support sustainable transport projects

(Railway Gazette, Suttton UK, 24 May 2023)  Alstom and Export Development Canada have signed a C$3·5bn three-year sustainable global corporate partnership covering export financing support and insurance in the transport sector. The export credit agency will focus its support on digital systems, services and projects based on low-emission freight and passenger transport technologies. These could include electrified, hybrid, battery or hydrogen propulsion. Alstom will report on sustainability using indicators such as CO2 emissions, renewable energy and gender balance.

https://www.railwaygazette.com/export-credit-agency-to-support-sustainable-trans...


UKEF and BAE reach deal over historic Iran weapons sales

Global Trade Review, London, 15 May 2023) UK Export Finance (UKEF) and defence giant BAE Systems have struck a last-minute out of court deal to settle a £13.9mn claim by the government agency over guarantees for missile systems sold to Iran in the 1970s. In around 1980, export credit agency UKEF paid a claim under a policy covering contracts for the supply and maintenance of the Rapier surface-to-air missile system, a deal which fell apart in the wake of the Islamic Revolution of 1979. A UKEF spokesperson later confirmed to GTR that a deal was struck and the trial averted, but did not provide details of the settlement. Court documents show that UKEF paid BAE (then BAC) £27.3mn under guarantees issued between 1973 and 1977, when Iran was ruled by Western-backed autocrat Shah Mohammed Reza Pahlavi. But in 1991, Iran’s defence ministry launched arbitration proceedings in The Hague against BAE for alleged non-performance of defence contracts, which triggered a counterclaim by the UK firm. Almost two decades later the arbitration panel awarded BAE £28.8mn from the Iranian defence ministry, while Iran was awarded an undisclosed “greater amount” from BAE in relation to other contracts not covered by the UK government guarantees. BAE has historically been a major purchaser of UKEF’s export credit products. Between 2018 and 2022 alone, UKEF extended £3.5bn in support to BAE through direct lending and buyer’s credit, according to the agency’s data.

https://www.gtreview.com/news/europe/ukef-and-bae-reach-deal-over-historic-iran-...


SWEDWATCH: The EU must urgently review its outdated policy on export credits

(Swedwatch, Stockholm, 27 April 2023) Despite promises to make financial flows consistent with a low-carbon economy, EU member states continue to provide financial support to the fossil fuel industry through export credits. It is time that the EU Commission replaces its outdated policy with new and ambitious regulation, prohibiting export support to oil and gas, Swedwatch argues in a new policy paper. “Export credit agencies are the world’s largest international public financiers of fossil fuels. In the EU, the lack of an ambitious regulatory framework allows for oil and gas projects to continue to be supported through state-backed export finance, undermining EU contributions to climate goals. This gap needs to be urgently addressed“, says Davide Maneschi, climate change program officer at Swedwatch. Export credit agencies (ECAs) have a critical role in the energy transition, as they de-risk large scale infrastructure and energy projects. However, in the period 2019-2021, some six years after the Paris Agreement was signed, G20 export credit agencies provided seven times more support for exports of fossil fuel projects than for clean energy. In an April 27 policy paper Swedwatch calls on the European Commission to promptly initiate a reform of  the regulatory framework on the activities of ECAs, ensuring that they are aligned with the Paris Agreement 1.5°C climate change mitigation goals and EU climate objectives.

https://swedwatch.org/themes/eu-must-urgently-review-its-outdated-policy-on-expo...


What's New for April 2023

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • OECD countries reach agreement to modernize export credit support
  • ECAs of a wide range of OECD countries still finance oil and gas
  • DeSmog: "UKEF locks us all into more carbon emissions for decades"
  • FOE investigates EXIM fossil fuel influence peddling in Alaska carbon bomb
  • Export Finance Australia (EFA) can no longer justify fossil fuel funding
  • ECAs to play significant role in securing Europe’s critical materials
  • UK export credit agency gains £10bn in additional financing
  • Russians urging greater EXIAR engagement with Africa
  • Italian credit agency SACE to allocate additional USD 1.1bn for Ukraine
  • SINOSURE pulls out of Nigerian AKK pipeline funding
  • COPE to investigate corruption charges against Sri Lanka ECA General Manager
  • Five decades later, UKEF-backed Iran missiles deal lands in court
  • Export Credit Norway (ECN) covers 85% of Hungarian missile system purchase
  • Angolan food production plant supported by Deutsche Bank and SACE
  • Chinese & foreign banks & ECAs bolster Belt & Road Initiative

OECD countries reach historic agreement to modernize export credit support

(Trade Finance Global, London, 7 April 2023) A modernisation package agreed in principle by participants will specifically allow countries to offer greater support for green projects while also expanding the use of export credits in the context of an evolving world economy and an increasingly competitive landscape. Within the package of reforms, the Participants agreed to expand the scope of green or climate-friendly projects eligible for longer repayment terms, as permitted under the Climate Change Sector Understanding (CCSU). “The modernisation package agreed by Participants to the Arrangement on Officially Supported Export Credits is a great milestone to help increase the impact of trade and finance flows on securing our climate objectives,” OECD Secretary-General Mathias Cormann said. “It will allow the scaling up and a better targeting of public and private finance to support climate-friendly investments and help us meet our global net zero emissions objective.” This reform is expected to come into effect later this year, once Participants complete their formal internal decision-making processes and agree to the new Arrangement text. [As noted in the next What's New article, OECD ECAs have a long way to go to brag about reducing the current $1 to $7 ratio of renewable to fossil fuel project support!]

https://www.tradefinanceglobal.com/wire/oecd-countries-reach-historic-agreement-...


ECAs of a wide range of OECD countries still finance oil and gas

(Energy Monitor, London, 17 April 2023) All 38 members of the OECD have pledged to reach net zero, with the US and EU in the middle of hugely significant domestic decarbonisation programmes. Yet export finance remains misaligned with the requirements of net zero, directing seven times more support to fossil fuels ($33.5bn per year) than renewables (just $4.7bn per year) on average from 2019 to 2021, according to the OCI. Between 2019 and 2021, OECD ECAs were the world’s largest public international financiers of energy projects. Although China is not subject to the OECD Arrangement guidelines, “a general trend has seen Chinese international public finance eventually follow the OECD guidelines, which also help shape G7 and G20 commitments”, says Nina Pušić, from the NGO Oil Change International (OCI). China’s international coal financing ban, for example, came into effect the same year that the OECD ECAs introduced a similar ban. OECD ECAs (most notably Japan, South Korea and Canada) were the world’s largest public international financiers of oil and gas between 2019 and 2021. Canada has since implemented a pledge made at COP26 to end export finance for oil and gas, but others, including Japan, the US and South Korea, have yet to either make such a pledge or fully follow on through on it. There is a campaign under way from 175 civil society groups from more than 45 countries – including the OCI, the Club of Rome and Friends of the Earth – for the OECD to phase out international public financing of fossil fuels.

https://www.energymonitor.ai/finance/why-decisive-oecd-action-could-be-the-death...


DeSmog: "UKEF locks us all into more carbon emissions for decades"

(DeSmog, London, 6 April 2023) UKEF has been accused of “locking us all into more carbon emissions for decades to come” by giving so much assistance to the sector. UKEF, a UK government agency, has provided billions of pounds worth of financial support to the high-carbon aviation sector since the Paris climate agreement was adopted in 2015, DeSmog analysis shows. UK Export Finance (UKEF) has effectively subsidised new airports, aircraft, and maintenance, despite stating that the oil-dependent industry is unlikely to begin cutting emissions “materially” until the 2030s. A spokesperson for UKEF, who did not dispute DeSmog’s findings, said: “UK Export Finance supports British businesses, such as the aerospace sector, to export and grow the economy. During the pandemic, UKEF supported the aviation industry with £7.4 billion to safeguard the industry and jobs. “UKEF is working with aerospace customers to help decarbonise the sector. This year we are setting a decarbonisation target for our aviation exposures to help deliver our pledge to net zero transition by 2050. Over half the financial support provided by UKEF since the landmark climate accord has gone to aviation, with Rolls Royce, Airbus, Boeing, and British Airways taking the lion’s share. UKEF offers a range of loans, insurance and guarantees to help British companies secure business abroad. Just one of the 62 deals supported, listed in the agency’s annual reports, came with any climate-related conditions attached. Aviation accounts for the majority of the greenhouse gas emissions currently generated by UKEF’s finance, according to its latest estimate: 8.2 million tons, equivalent to putting 1.8 million petrol-powered cars on the road. DeSmog has previously reported on the significant donations made by aviation-linked individuals and companies to political parties, particularly the Conservatives. Airbus gave a total of £35,000 to the Tories between 2015 and 2018, according to official records, though there is no suggestion that the UKEF financing was influenced by any of the donations.


     
          https://www.desmog.com/2023/04/06/aviation-industry-awarded-18-billion-of-public...    
          


FOE investigates EXIM fossil fuel influence peddling in Alaska carbon bomb

(Friends of the Earth, Washington, 13 April 2023) Friends of the Earth has filed an open records request of the Alaska Gasline Development Corporation (AGDC), the state entity developing the Alaska LNG Project–a proposed $38.7 billion LNG project with a potential carbon footprint of 2.7 billion metric tons of CO2, ten times the climate pollution of the recently approved Willow Project. The Alaska LNG Project is already angling for significant federal subsidies. A provision snuck into the Infrastructure Investment and Jobs Act (IIJA) makes the project potentially eligible for a $25.6 billion loan guarantee. The project was also “provided official correspondence” that it will receive a Letter of Interest from the U.S. Export-Import Bank (EXIM), the export credit agency of the US. Thanks to its new Make More in America Initiative, passed in 2022 and widely seen as benefiting LNG developers, EXIM can now finance domestic projects like Alaska LNG as well as international ones. Hopefully the Biden Administration isn’t about to greenlight another carbon bomb,” said Lukas Ross, Program Manager at Friends of the Earth. A story about two former fossil fuel executives shaping climate policy seems like something out of the Trump Administration.”

https://foe.org/news/alaska-lng-boondoggle/


Export Finance Australia (EFA) can no longer justify fossil fuel funding

(Lowy Institute, Sydney, 6 April 2023) Since 2009 EFA has helped to underwrite global heating by providing roughly AU$1.69 billion to fossil fuel firms, while offering a relatively paltry AU$20 million for renewable energy projects. Last year, many of Australia’s key allies signed the so-called Glasgow Statement, which commits signatories to ending public support for international fossil fuel projects. The reasoning was clear: continuing to use taxpayer dollars to underwrite new oil, gas and coal projects, such as coal-fired power plants, is inconsistent with the 1.5°C warming limit and goals of the Paris Agreement. Our ECA research suggests this pattern of lending is likely a result of interrelated pressures from large, politically influential exporting firms that argue EFA’s support is critical for the Australian economy, and national security concerns about the future of Australia’s energy security. However, these arguments no longer stack up. First, fossil fuel firms that benefit from billions in EFA support are among Australia’s largest and most profitable corporations; second, ending public financial support for the export of coal and gas will not prevent the sector from maintaining energy security necessary to power the country’s economy and third, and related, if Australia is to be a renewable energy superpower as the PM has declared, Canberra can ill afford to delay supporting renewables industries.

https://www.lowyinstitute.org/the-interpreter/australia-can-no-longer-justify-fo...


ECAs to play significant role in securing Europe’s critical materials

(Global Trade Review, London, 23 April 2023) Export credit agencies (ECAs) are set to play a vital part in the EU’s Critical Raw Materials Act (CRMA), introduced to help secure supplies of metals and minerals needed for the transition from fossil fuels to sustainable energy.The act is part of the EU’s bid to minimise the effect of rocketing prices and supply chain disruptions in the wake of Russia’s war with Ukraine and the pandemic, as well as to mitigate its reliance on a small number of countries, including China, for access to minerals and metals essential to the production of more environmentally friendly energies.It also intends to set up an EU export credit facility and a critical raw materials “club” aimed at all countries interested in strengthening global supply chains. The EU’s list of critical raw materials includes nickel, lithium, aluminium, cobalt and graphite, which are crucial for technologies such as solar photovoltaic panels and electric vehicles. Major investment is required to set up upstream, midstream and downstream operations in Europe.

https://www.gtreview.com/news/europe/ecas-to-play-significant-role-in-securing-e...


UK export credit agency gains £10bn in additional financing

(Institute of Export & International Trade, London, 4 April 2023) UK Export Finance (UKEF) has been granted an extra £10bn of capacity to support UK businesses selling overseas. According to a press statement, this brings the total cap on its financial exposure to £60bn and adds extra capacity to the agency’s work supporting UK exporters. UKEF says it provided £7.4bn in financing in the 2021-22 financial year, which supported 72,000 jobs in the UK. The government credit agency also states that, as part of its renewed focus on combatting climate change, the additional capability will help it focus on building long-term, sustainable growth.

https://www.export.org.uk/news/636518/UK-export-credit-agency-gains-10bn-in-addi...


Russians urging greater EXIAR engagement with Africa

(Weekly Blitz, Dhaka, 29 April 2023) Russia’s weak economic presence in Africa has become a significant question of concern for some experts as they wonder why the nation is not aggressive with this like its ally, China. Smaller countries, such as Turkey, are visibly broadening their economic influence, strengthening business investments and so are a number of Gulf States. “It is important for us to expand and improve competitive government support instruments for business. Senator Igor Morozov, a member of the Federation Council Committee on Economic Policy and Chairman of the Coordinating Committee on Economic Cooperation with Africa stressed: "It is obvious that over the thirty years when Russia left Africa, a number of countries such as China, India, the United States and the European Union have significantly increased their investment opportunities there in the region”. The meeting collectively acknowledged Africa as a huge continent that still requires economic development. Its active demographic growth and abundance of natural resources offer conditions to become the world’s biggest market in the next few decades. Nikita Gusakov, Head of the Russian Export Credit and Investment Insurance Agency (EXIAR), reiterated that Africa was a priority for the agency, outlining a number of deals that EXIAR has been involved in on the continent. He reiterated at the meeting, one of the roadblocks is the lack of adequate knowledge among Russian companies about the opportunities available in Africa. It is partly due to limited interaction with the private sector actors and civil society. During the Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC), Chinese President Xi Jinping said: “China will expand cooperation in investment and financing to support sustainable development in Africa. China provided $60 billion of credit line to African countries to assist them in developing infrastructure, agriculture, manufacturing and small and medium-sized enterprises.” Russia could consider the Chinese model of financing various infrastructure and construction projects in Africa. Secretariat of the Russia-Africa Partnership Forum (RAPF) agreed during a recent meeting that lack of financial support was the major reason for Russia’s weak economic footprints across Africa. The representatives leading Russian companies and banks, in attendance, discussed an effective system of financing projects and supporting investment in Africa.

https://www.weeklyblitz.net/international/russians-complaining-how-to-engage-wit...


Italian credit agency SACE to allocate additional USD 1.1bn for Ukraine

(Euromaidan Press, Kiev, 26 April 2023) In addition to the previously announced €500 million ($522 million), the Italian Export Credit Agency SACE will allocate an additional €1 billion ($1.1 billion) to support trade and financial operations. This is a highly important signal for Italian business, as reported by Interfax-Ukraine, referencing the statement by Prime Minister of Ukraine Denys Shmyhal during the briefing in Rome.During his meeting with Prime Minister Shmyhal, Italian President Sergio Mattarella advocated for Ukraine’s swift EU accession.

https://euromaidanpress.com/2023/04/26/italian-credit-agency-sace-to-allocate-ad...


SINOSURE pulls out of Nigerian AKK pipeline funding

(Guardian.NG, Abuja, 19 April 2023) Financiers of the Abuja-Kaduna-Kano pipeline have pulled out of the project, citing an alleged 570% inflated contract sum, far above global threshold. Infrastructure and Commercial Bank of China (ICBC), Infrastructure Bank of China and China Export Credit Agency (SINOSURE) – were to provide 85% or $2.38 billion of the funding requirement. Their Nigerian counterparts, Oilserve and Oando, are to shoulder the balance 15% or $420 million. With this development, the project has been stalled, as there is no funding to cover cost of the second and third legs from Abuja to Kaduna and Kaduna to Kano. It was learnt that the Nigerian National Petroleum Corporation Limited (NNPCL), through the Nigeria Gas Transport Processing Company (NGTPC), had attempted to bridge the funding gap, but lacked the needed liquidity.  Globally, the cost of high-pressure transmission gas pipelines is built at $800,000 per kilometre. In Nigeria, the Final Investment Decision (FID) for EPC was scheduled at $4,560,260 million, which is a 570% inflation above global standards.These examples clearly show that Nigeria has the highest cost of contract in the world. These companies cannot afford to go into cahoots with Nigerians because they would be easily caught when they submit their financial reports to their countries of origin.”

https://guardian.ng/news/nigeria/akk-pipeline-abandoned-over-alleged-570-inflate...


COPE to investigate corruption charges against Sri Lanka ECA General Manager

(Island Online, Sri Lanka, 9 March 2023)The Committee on Public Enterprises (COPE) has proposed that a three-member committee be appointed by the Secretary to the Ministry of Finance to investigate corruption charges levelled against the General Manager of the Sri Lanka Export Credit Insurance Corporation (SLECIC). The recommendation came following a revelation made during a recent COPE meeting about several accusations of corruption being made against the SLECIC General Manager, Dilruk Ranasinghe.
Speaking in this regard, Sri Lanka Podujana Peramuna (SLPP) MP Attorney-at-Law Madhura Withanage stated that Ranasinghe should currently be ‘behind bars or in police custody’. He accused Ranasinghe of fraudulently obtaining funds from SLECIC for his personal vehicular expenses, amongst other accusations, adding that he has also received information that Ranasinghe had  defrauded the company by issuing fake bills. Accordingly, COPE recommended that a committee be appointed to investigate these accusations and that the relevant report be submitted within three weeks.

https://www.adaderana.lk/news/88957/committee-to-investigate-corruption-charges-...


Five decades later, UKEF-backed Iran missiles deal lands in court

Global Trade Review, London, 17 April 2023) UKEF is suing BAE Systems, one of its biggest clients, over contracts for the supply of missiles to Iran in the 1970s. The UK’s export credit agency is trying to recover £13.9mn it paid to the defence and aerospace giant in the 1980s, under three export credit insurance policies issued between 1973 and 1977. A trial is set for London’s High Court on May 8. The government guaranteed contracts for the supply of weapons, spares and maintenance for BAC’s Rapier surface-to-air missile systems to Iran, then led by the Western-backed autocrat Shah Mohammed Reza Pahlavi. In around 1980, BAC called on the guarantees due to “their Iranian counterparty’s non-performance” under the contracts, according to UKEF’s statement of claim in the case. The document does not describe the reason the contracts fell apart but in 1979 the Shah was overthrown by a popular uprising that became the Islamic Revolution, and was replaced by a clerical regime hostile to the UK.

https://www.gtreview.com/news/europe/five-decades-later-ukef-backed-iran-missile...


Export Credit Norway (ECN) covers 85% of Hungarian missile system purchase

(Daily News, Budapest, 22 April 2023) Hungary buys high-tech Norwegian missile system A 21st-century high-tech Norwegian missile system, NASAMS, Hungary is getting from Kongsberg, Norway’s premier supplier of defence and aerospace-related systems, will reinforce the country’s air defence from this year, Defence Minister Kristóf Szalay-Bobrovniczky said in Kongsberg. The NASAMS system is expected to be inaugurated in Hungary in August, the ministry said. Hungary signed the contract on the NASAMS system in November 2020. In March 2021, the country signed a financing agreement with Export Credit Norway (ECN) and the Norwegian Export Credit Guarantee Agency (GIEK) that will cover 85 percent of the 410 million euros cost of the NASAMS. The NASAMS, used widely among NATO members, will replace Hungary’s more than 40-year-old Soviet missile system, MTI wrote.

https://dailynewshungary.com/hungary-buys-high-tech-norwegian-missile-system/


Angolan food production plant supported by Deutsche Bank and SACE

(Trade Finance Global, London, 17 April 2023) Today, Deutsche Bank and SACE announced the close of a €57 million, 10-year lending facility in support of local food production in the Republic of Angola. This facility was guaranteed by SACE, the Italian Export Credit Agency (ECA), and Desenvolvimento de Angola (BDA). The facility will be used to fund an export contract with the Italian company, Andreotti Impianti Spa, and Carrinho Empreendimentos SA, a local Angolan company for the supply of a fully automated soybean and sunflower crushing plant. Located in Lobito, the plant will be the largest of its kind in Africa, with a throughput capacity of up to 4,000 tonnes of soybeans or 2,400 tonnes of sunflower seeds per day. Construction of the soybean and sunflower crushing plant will take approximately two years and is expected to create around 300 direct jobs and thousands of indirect jobs related to soybean and sunflower planting.

https://www.tradefinanceglobal.com/wire/angolan-food-production-plant-supported-...


Chinese & foreign banks & ECAs bolster Belt & Road Initiative

(China Daily, Beijing, 11 April 2023) Some of China's large State-owned commercial banks and foreign lenders have continuously consolidated the Belt and Road Initiative and expanded into new areas of business to align with China's new development pattern and advance the country's high-level opening up. As of the end of last year, the bank had followed up on more than 900 corporate credit granting projects in BRI-involved countries and regions, with total credit exceeding $269 billion. Between 2015 and 2019, BOC issued five series of BRI-themed bonds in seven currencies. The total amount was equivalent to $14.5 billion. China Construction Bank, as of the end of last year, had supported 342 projects in 60 BRI countries and regions, with a total financing quota of more than $50 billion. In addition, the outstanding balance of its international business guarantees reached $17 billion, covering projects in 112 BRI countries and regions. Standard Chartered, a UK-based international banking group, has extensive cooperation with domestic financial institutions and corporate clients in BRI countries and regions, said Jerry Zhang, executive vice-chairman and CEO of Standard Chartered Bank (China) Ltd, the group's local subsidiary. Standard Chartered participated in a large solar power project in the Middle East. The contractors concerned were Chinese companies. While some of the financing was provided by the Export-Import Bank of China and the China Development Bank, European manufacturers also contributed to the project, which involved multilateral development banks, such as the Asian Infrastructure Investment Bank and the African Development Bank.

https://global.chinadaily.com.cn/a/202304/11/WS6434b15ea31057c47ebb961b.html


What's New for March 2023

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • OECD Arrangement participants fail to clinch modernisation deals
  • Commitment to end international finance for fossil fuels is shifting billions but key countries are missing in action
  • Italy Vows to Support Fossil Fuel Projects At Least Until 2028 Despite COP26 Pledge to Cut Investments
  • SACE to insure up to $3 billion in corporate energy bill payments disrupted by Russia's war against Ukraine
  • Parliamentary question on SACE: Fossil fuel subsidies & potential conflict of interest
  • Italy waters down fossil fuel pledge as Sace backs gas
  • Netherlands contradicts COP26 promise, moves ahead to support 30 year oil and gas production project in Brazil
  • The changing face of MENA export credit agency-backed financing
  • IMF calls for scaling up Climate Finance
  • Powering up women in trade, treasury & payments
  • EXIM provided $600m to Lithuania to fight punative Chinese sanctions over relations with Taiwan
  • Asociación de Cooperativas Argentinas (ACA) Borrows $80m from FMO, FinDev Canada, Rabobank to Boost Farm Exports
  • Embraer closes US$ 200 million EXIM credit facility with Citibank
  • Polish ECA supporting US$73m (£60m) project to expand Angolan University

OECD Arrangement participants fail to clinch modernisation deals

(Global Trade Review, London, 15 March 2023) A meeting of the OECD Arrangement on export credits ended last week without an announcement of a breakthrough on any key planks in its modernisation agenda. The arrangement was created to avoid like-minded countries from undercutting each other on pricing but has been undermined by the fact that major export credit providers such as China and India are not members. Commercial banks, export credit agencies (ECAs), the European Union and governments who host export credit-supported projects have called for changes to minimum pricing, tenors and clear rules on sustainable financing to ensure that OECD ECAs remain competitive and can support a broad range of projects. Oil Change International, an NGO that campaigns for an end to public finance for fossil fuels, says it is disappointed that there was no apparent agreement on the Climate Change Sector Understanding (CCSU) aspect of the arrangement in order to boost incentives for green projects. OCI further notes that "OECD countries failed to conclude negotiations on climate friendly incentives to align Export Credit Agencies, the world’s largest international financiers of fossil fuels, with international climate goals", adding "the world cannot afford another wasted minute" and reminding them that 175 civil society institutions have called on the arrangement members to end support for fossil fuel projects by their ECAs.

https://www.gtreview.com/news/global/oecd-arrangement-participants-fail-to-clinc...


Commitment to end international finance for fossil fuels is shifting billions but key countries are missing in action

(Oil Change International, Washington, 15 March 2023) Promise Breakers, a report released today by Oil Change International, reveals that the Glasgow Statement, a joint commitment forged at the 2021 UN climate summit (COP26), is already shifting an estimated USD 5.7 billion per year out of fossil fuels and into clean energy, with the potential of a further 13.7 billion per year if all Glasgow Statement signatories fulfill their commitments. At COP26 in Glasgow, 39 countries and institutions pledged to end international public finance for fossil fuels by the end of 2022 and shift this money to clean energy. This report is the first international assessment of signatories’ implementation of the commitment since the passing of the end of 2022 deadline. The report reveals that while some high-income countries have kept their Glasgow commitment, a group of major providers of international public finance have broken their promise, including Germany, Italy, and the United States. The report contains a detailed report card on each signatories’ policies, with recommendations for improvement.

https://priceofoil.org/2023/03/15/new-report-commitment-to-end-international-fin...


Italy Vows to Support Fossil Fuel Projects At Least Until 2028 Despite COP26 Pledge to Cut Investments

 (Earth Org, Hong Kong, 28 March 2023) ) The new policy will allow Italy’s export credit agency SACE to support various fossil fuel projects, including exploration, production, storage, and distribution. Climate experts have strongly criticised the move, saying it would breach international commitments and slow down the country’s green transition. The new rules, presented by Premier Giorgia Meloni last week, will allow Italy’s state-owned export credit agency SACE to finance gas exploration and production projects until January 2026. Existing exemptions, which include projects deemed “strategic” for the nation’s energy and economic security, could postpone the date even further. Support for oil transport, storage, and refining projects will be allowed until 2024, and oil distribution until 2028. A deadline for gas transport and storage has yet to be defined.

https://earth.org/italy-fossil-fuel-projects/


SACE to insure up to $3 billion in corporate energy bill payments disrupted by Russia's war against Ukraine

(European Commisson, Brussels, 6 March 2023) The European Commission has approved, under EU State aid rules, an  amendment to an existing Italian guarantee scheme, including an up to €3 billion budget increase, for the reinsurance of natural gas and electricity trade credit risk in the context of Russia's war against Ukraine. The amendment was approved based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (‘TFEU'), recognising that the EU economy is experiencing a serious disturbance. Under the administration of SACE, the Italian Export Credit Agency, the scheme  ensures that trade credit insurance continues to be available to companies, avoiding the need for them to pay their energy bills in advance or within a few weeks, thus reducing their immediate liquidity needs. This measure will also make it easier for these customers to obtain a postponement of payment of their energy bills by up to 24 months, based on an agreement with their energy supplier. At the same time, it will ensure that trade credit insurance continues to be available to companies, avoiding the need for them to pay their energy bills in advance or within a few weeks, thus reducing their immediate liquidity needs. The reinsurance of natural gas and electricity trade credit risk was deemed necessary in the context of Russia's war against Ukraine.

https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1484


Parliamentary question on SACE: Fossil fuel subsidies & potential conflict of interest

(ReCommon, Rome, 29 March 2023) The decision by the government of Italy and SACE to break their climate promise made during COP26 in Glasgow has aroused strong indignation. SACE, Italy’s export credit agency, will continue to finance fossil fuel projects abroad until at least 2028, thus reinforcing its position as the leading supporter of the fossil fuel industry in Europe and sixth globally. This is an indignation so strong that it prompted the group Alleanza Verdi e Sinistra in the Chamber of Deputies to present an oral parliamentary question, aimed at clarifying three aspects:

  • whether the actions of the Government and SACE disregard the commitments made during COP26
  • whether the right steps will be taken to stop public investment and SACE’s guarantees for fossil fuel projects abroad linked to the extraction and transport of fossil fuels
  • whether there is a potential conflict of interest where the Chairman of the Board of Directors of SACE is also a member of the Board of Directors of Eni

ENI is an Italian global energy company, active at every stage of the value chain: from natural gas and oil to co-generated electricity and renewables, including both traditional and bio refining and chemicals

https://www.recommon.org/en/fossil-fuel-subsidies-and-potential-conflict-of-inte...


Italy waters down fossil fuel pledge as Sace backs gas

(Global Trade review, London, 22 March 2023) Italy has walked away from a pledge to end support for international fossil fuel projects by the end of last year, indicating it will continue to provide export credit cover for parts of the oil industry in the short term and delaying a decision to put an end date on its backing for the gas sector. Sace, the Italian export credit agency (ECA), yesterday published its long-anticipated plan for complying with its commitment alongside other nations at the 2021 Cop26 summit to “end new direct public support for the international unabated fossil fuel energy sector… except in limited and clearly defined circumstances that are consistent with a 1.5°C warming limit and the goals of the Paris Agreement”. Signatories were supposed to have nixed backing for the sector by the end of last year, but the Sace policy shows that the agency did not end support for all exports involving the oil or gas sectors by that deadline. The policy shows that Sace ended support for unabated gas-fired power generation in January this year, but gas exploration and production facilities will still qualify for support until 2026.

https://www.gtreview.com/news/europe/italy-waters-down-fossil-fuel-pledge-as-sac...


Netherlands contradicts COP26 promise, moves ahead to support 30 year oil and gas production project in Brazil

(Price of Oil, Washington, 23 March 2023) The Netherlands just contradicted its COP26 pledge to end public finance for fossil fuels by the end of 2022 and shift this money to clean energy by issuing a commitment to insure the Brazil Santos Basin Pre-Salt Pole oil and gas production project for around USD 321 million. The Netherlands published a policy implementing the commitment in November 2022, but it has major loopholes that allow continued fossil support by the Dutch Export Credit Agency (ECA) Atradius DSB. This includes a “transition period” in breach of the agreed end of 2022 deadline, allowing projects that have requested financial support in 2022 to still be approved in 2023.

https://priceofoil.org/2023/03/23/the-netherlands-contradicts-cop26-promise-move...


The changing face of MENA export credit agency-backed financing

(TXF, London, 1 March 2023) The volume of ECA business and the number of deals is down in the Middle East, but at the same time we are seeing higher volume and more deals in North Africa. Industrial diversification is driving the changes of a region in transition. There is a significant evolution taking place in the Middle East and North African (MENA) region in terms of export credit agency (ECA)-backed export and project financing - which over the last few years has largely mirrored the changing industrial outlook and direction of much of the region. Oil/gas revenues in those countries have increasingly become used in sectors such as oil/gas downstream activities, healthcare, social projects, renewable energy, high-tech and productive industries. At the same time, many of the ECAs and banks have now stopped financing new upstream oil & gas projects and are focused on supporting exports and viable projects in other sectors throughout MENA.

https://www.txfnews.com/articles/7513/The-changing-face-of-MENA-export-credit-ag...


IMF calls for scaling up Climate Finance

(IMF, Luxembourg, 1 February 2023) IMF Deputy Managing Director Bo Li at the EIB Group Forum 2023 spoke to the importance of the green transition - "away from fossil fuels that are subject to supply disruptions and volatility, and towards renewables such as wind and solar energy.  The growing impact of global warming reminds us of the urgency. From heatwaves in Europe and wildfires in North America, to droughts in Africa and floods in Asia: last year saw climate disasters on all five continents." He noted that without decisive action, things are set to get worse because "we are clearly not on the right trajectory for cutting global emissions and need to cut global emissions by 25‑50 percent by 2030 compared to pre-2019 levels to contain temperature rises to between 1.5 and 2 degrees celsius. Financing needed to meet adaptation and mitigation goals are estimated at trillions of US dollars annually until 2050 but so far, we are seeing only around 630 billion dollars a year in climate finance across the whole world—with only a fraction going to developing countries. This is particularly concerning—because emerging and developing economies have vast needs for climate finance. And it underlines why it’s so important for advanced economies to meet or exceed the pledge of providing $100 billion per year in climate finance for developing countries. This is not just the right thing to do, it is the smart thing to do."

https://www.imf.org/en/News/Articles/2023/02/28/sp022823-scaling-up-climate-fina...


Powering up women in trade, treasury & payments

(Trade Finance Global, London, 8 March 2023) President and Chair of the Export-Import Bank of the United States (EXIM) Reta Jo Lewis gave a keynote address to the Trade Finance Global’s Women in Trade, Treasury & Payments roundtable, urging multilateral organisations to take strides towards improving on the economic welfare of societies, saying leaders must do their part to recognise that advancing gender equity must be a top priority as they work to achieve the sustainable development goals set by the United Nations. She noted that "Multilateral organisations also have the ability to establish norms and, most importantly, use their financing and programming to create incentives for nations to adhere or inch closer to these norms", and that EXIM recognises its responsibility to promote gender equity in trade finance. In the U.S., there are approximately 13 million women-owned businesses, and they are growing at more than double the rate of all other businesses. More than nine million Americans are employed by women-owned businesses, which are generating an estimated $1.9 trillion in revenue adding that although female entrepreneurship is growing exponentially in the U.S. and globally, one of the largest obstacles for women-owned firms is a lack of access to capital and/or funding.

https://www.tradefinanceglobal.com/posts/powering-up-women-trade-treasury-paymen...


EXIM provided $600m to Lithuania to fight punative Chinese sanctions over relations with Taiwan

(Global Echo, Washington, 8 March 2023) In November 2021 the U.S. provided $600 million in an export credit agreement to help Lithuania withstand pressure from China and joined the EU's WTO lawsuit in support of Vilnius. Days after the establishment in 2021 of the “Taipei Representative Office in Lithuania,” Taiwan’s de facto embassy, Beijing downgraded diplomatic relations and blocked most trade with Vilnius over what it calls a violation of the One China policy. The action prompted the European Union to sue China at the World Trade Organization over “discriminatory trade practices” against Lithuania that it said threatened the integrity of the EU single market. Beijing denies instructing Chinese companies to stop doing business with Lithuanian partners. In March 1990, Lithuania became the first republic to break away from the Soviet Union by declaring itself an independent state, a decision the White House applauded.

https://globeecho.com/news/north-america/united-states/us-lithuania-in-talks-aim...


Asociación de Cooperativas Argentinas (ACA) Borrows $80m from FMO, FinDev Canada, Rabobank to Boost Farm Exports

(Microcapital Monitor, Boston, 10 March 2023) Asociación de Cooperativas Argentinas (ACA), a network of 143 agricultural cooperatives in Argentina, recently borrowed USD 80 million from three institutions, led by the Dutch development bank Financierings-Maatschappij voor Ontwikkelingslanden (FMO). FMO is lending ACA half of the total, and the Canadian government’s FinDev Canada and the Dutch cooperative Rabobank are each providing USD 20 million. ACA plans to use the cash as working capital in support of its exports of grains and seeds that it buys from cooperatives that represent 50,000 farmers. FinDev Canada is Canada's development finance institution (DFI), supporting the private sector in developing markets to promote sustainable development.

https://www.microcapital.org/microcapital-brief-asociacion-de-cooperativas-argen...


Embraer closes US$ 200 million EXIM credit facility with Citibank

(ARGS, London, 9 March 2023) Embraer has closed a US$ 200 million credit facility to finance purchases from direct suppliers in the United States. This financing is being provided by Citibank and guaranteed by the Export-Import Bank of the United States (EXIM), the country’s official export credit agency. This credit facility with EXIM and Citibank will support Embraer’s efforts to diversify its credit operations in the aviation market worldwide, providing the company with additional financing options and improving its loan profile.

https://airlinergs.com/embraer-closes-us-200-million-credit-facility-in-the-us/


Polish ECA supporting US$73m (£60m) project to expand Angolan University

(Construction Index, London, 30 March 2023) The project will extend the university and improve access to higher education. The project is being developed by a joint venture led by Quenda Business, a Polish project management, international business advisory and consulting company that operates across sub-Saharan Africa, particularly in Angola and the Democratic Republic of Congo. Quenda’s partner is Polish contractor Torhamer, a specialist in rail and infrastructure. Standard Chartered bank is acting as the social loan coordinator, bookrunner and coordinating bank, supported by the Polish export credit agency Korporacja Ubezpieczeń Kredytów Eksportowych (KUKE).

https://www.theconstructionindex.co.uk/news/view/poles-spearhead-angola-universi...


What's New for February 2023

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • LNG at forefront of Dutch Atradius foreign fossil fuel funding
  • Atradius backs Dutch construction companies profiting from devastating Philippines mega-airport
  • Insurance giant Marsh under fire over role in controversial oil project
  • 26 Italian oil and gas companies visit Kuwait with SACE
  • Environmentalists continue to challenge UKEF funding for gas in Mozambique
  • OECD Civil Society Joint Position on ECA oil and gas restrictions
  • Progress within export finance on sustainability, but changes sorely needed on OECD Arrangement
  • WFW advises HSBC on US$300m SACE Facility for Bahrain's nogaholding
  • The French Mistral: The Case of the Russian Sale and Its Aftermath
  • Lessors & ECAs lead rhuge Air India jet order while Kenya Airways defaults on EXIM
  • Public Financing as a Critical Path Forward to a Just Energy Transition in Africa
  • Swedish Export Credit (SEK) Securities Exchange Act Form 6-K
  • Finnvera Group 2022 Financial Statements
  • New ECGC policies to support Indian Exporters: Economic Survey Report 2023
  • Pandemic, disasters, war: Michal Ron looks back on Berne Union Presidency

LNG at forefront of Dutch Atradius foreign fossil fuel funding

(Argus Media, London, 22 February 2023) The Netherlands is assessing several applications for international fossil fuel projects that could be granted state funding until the end of 2023, most of which target the LNG supply chain. Dutch export credit agency Atradius — in charge of the country's public financing for foreign fossil fuel projects — received 10 such applications before the end of last year that amount to €3.9bn in state funding if granted, according to a government document. The government in 2021 committed to ending all public financing for international unabated fossil fuel projects by 2022 but granted a one-year exemption to applications that were submitted before the deadline. Six of the 10 applications submitted before the end of 2022 concern transactions related to projects in the upstream sector, including the processing system for a new LNG project, a new offshore LNG project and the construction of a floating production platform for new fossil-fuel infrastructure, the government said today. Other applications concern the supply and delivery of vessels for existing and new fossil-fuel infrastructure. In addition, Atradius already granted coverage commitments for €8.4mn, with three projects related to the sale of LNG and two to the development of a new gas pipeline and the adaption of existing storage tanks. The government said that for "business sensitivity" reasons, it did not disclose the names of the applicants or the country where the projects would be located. The government's commitment in 2021 to ending public financing for international unabated fossil fuel projects built on a pledge made at the UN Cop 26 climate summit in Glasgow, which had already made room for exceptions "in limited and clearly defined circumstances that are consistent with a 1.5-degree warming limit and the goals of the Paris agreement". This included projects that "safeguard security of supply in Europe", such as LNG terminals and infrastructure developed for existing LNG sources, the Dutch government said last year. By Florence Schmit

[Dutch police arrested six climate activists at their homes on January 26th for planning to block the A12 highway to nonviolently demand an immediate end to the government's annual fossil subsidies. Nearly 40 civil society organizations and more than 1,000 people held a solidarity demonstration on the highway on January 28th - 768 were arrested and another demonstration is planned for March 11.. Dutch and Brazilian CSOs have also written to Dutch officials protesting support for a Brazilian floating production storage and offloading (FPSO) vessel ]

https://www.argusmedia.com/pages/NewsBody.aspx?frame=yes&id=2422404&menu=yes


Atradius backs Dutch construction companies profiting from devastating Philippines mega-airport

(Global Witness, London, 2 February 2023) Global Witness’ new report reveals how a new mega-airport north of Manila displaced hundreds of residents after a coercive consultation process in which armed soldiers were sent door-to-door, leaving community members describing feeling “terrified”... The Dutch company Royal Boskalis Westminster NV signed a contract worth €1.5bn with a Philippines conglomerate to construct the first phase of the project, with insurance granted by the Dutch state via export credit agency Atradius Dutch State Business. According to local communities, around 700 families stood to be evicted from their homes with about half reportedly receiving no compensation The New Manila International Airport project threatens Manila Bay’s diverse coastal ecosystems which are vital to prevent worsening climate change, as well as threatening to decimate marine biodiversity and migratory bird populations.

https://www.globalwitness.org/en/press-releases/dutch-construction-companies-wil...


Insurance giant Marsh under fire over role in controversial oil project

(Inclusive Development International, Asheville NC, 7 February 2023) Ugandan, Tanzanian and U.S.-based human rights and environmental groups have lodged a formal complaint alleging that Marsh is violating OECD guidelines for responsible business conduct by serving as insurance broker for the planned East African Crude Oil Pipeline (EACOP). The complainants are calling for Marsh to drop its insurance brokerage role for the EACOP. Inclusive Development International and 10 human rights and environmental organizations in Uganda and Tanzania, which are remaining anonymous due to fear of reprisals, filed a complaint to the U.S. government today alleging that New York-based insurance giant Marsh, a member of the Marsh McLennan group, violated international guidelines for responsible business conduct by serving as insurance broker for the highly controversial East African Crude Oil Pipeline (EACOP). The groups submitted the complaint to the U.S. National Contact Point (NCP) for the OECD Guidelines for Multinational Enterprises, an office within the U.S. State Department tasked with handling allegations against American companies.

https://www.inclusivedevelopment.net/pipelines/insurance-giant-marsh-under-fire-...


26 Italian oil and gas companies visit Kuwait with SACE

(Ansamed, Rome, 1 February 2023) Some 26 Italian companies operating in the oil and gas sector visited Kuwait Jan 30-31 as part of a trip organised by the Italian embassy in close collaboration with the Italian Export Credit Agency (SACE), Confindustria, the main association representing manufacturing and service companies in Italy, and the Italian Trade Agency. During the visit, meetings were held including ones at the Kuwait Chamber of Commerce and Industry, the Kuwait Petroleum Corporation (KPC) and the Ministry of Electricity and Water (MEW), as well as in-depth sessions discusing "doing business in Kuwait" curated by KPMG and major Kuwaiti law studios. In his opening remarks, the Italian ambassador to Kuwait, Carlo Baldocci, highlighted significant opportunities for Italian companies in Kuwait..

https://www.ansamed.info/ansamed/en/news/sections/economics/2023/02/01/26-italia...


Environmentalists continue to challenge UKEF funding for gas in Mozambique

(Mediarun Search, London?, 13 February 2023) In January, an appeals court rejected the request, but Friends of the Earth wants the arguments to be heard again by the Supreme Court (Portugal’s equivalent of the Constitutional Court). “The funding decision was made without taking into account the impressive emissions from flaring the gas, and without considering how these emissions align with globally agreed climate targets,” they said in a statement. Before passing a judgment, the Supreme Court will first assess the appeal and determine whether it has merit and whether an issue of greater constitutional importance is at stake. British export credit agency UK Export Finance (UKEF) has committed US$1,150 million (€1,077 million) in funding in 2020 to develop an offshore liquefied natural gas (LNG) project in the Rovuma Basin in Cabo Delgado, northern Mozambique. But Friends of the Earth say the environmental impact has not been properly assessed, contrary to the UK’s commitment to comply with the 2015 Paris Climate Change Agreement to limit global warming. The organization estimates that over the years of operation, the project will generate up to 4,500 million tons of greenhouse gases. The project in question, promoted by a consortium led by French oil major Total Energies in the Rovuma basin, was suspended in 2021 after attacks by armed groups in Cabo Delgado province. Worth between 20,000 and 25,000 million euros, the gas extraction megaproject is one of the largest private investments planned for Africa and is supported by several international financial institutions.

https://www.mediarunsearch.co.uk/environmentalists-have-appealed-to-challenge-br...


OECD Civil Society Joint Position on ECA oil and gas restrictions

(Oil Change International, Washington, 27 February 2023) Over 175+ organizations from over 45 countries have signed onto a Joint Civil Society Position calling for a robust prohibition on oil and gas finance under the OECD Arrangement on Export Credits. Export Credit Agencies (ECAs) are the world’s largest international public financiers of fossil fuels, supporting an average of over $33 billion USD per year in fossil fuels- which is 7x the amount of their support for renewable energy. The Joint Position calls on OECD negotiators, including the US, EU Commission, Canada, UK, and others, to table a robust proposal on oil and gas prohibition to listen to the science and align the Arrangement with a 1.5C warming trajectory. One week before international negotiators meet at the Organisation for Economic Co-operation and Development (OECD) in Paris (March 6-9) to discuss aligning export finance with international climate goals, more than 175 civil society organizations (CSOs) from over 45 countries have released a Joint Position calling on world leaders to end OECD export finance for oil and gas, and explaining how it can be done. They urge OECD members who consider themselves climate leaders to table a proposal for doing so. The position is also supported by the Co-presidents of the Club of Rome,

https://priceofoil.org/2023/02/27/over-175-organizations-launch-proposal-for-the...


Progress within export finance on sustainability, but changes sorely needed on OECD Arrangement

(TXF, London, 10 February 2023) The International Chamber of Commerce (ICC) White Paper update of its 2021 report shows that ECAs and banks have made good progress on the sustainability front, but lack of change to the OECD Arrangement is holding the sector back. The original White Paper (produced by ICC, Acre Impact Capital, The Rockefeller Foundation, and International Financial Consulting) provided policy and product recommendations designed to align the industry with the United Nations SDGs. The White Paper not only offers a roadmap towards a more sustainable export finance industry, but also provides suggestions from industry participants as to how the sector can change to ensure there are better terms for financing particularly for social projects and transactions. Launched at an ICC workshop on 8 February in Paris, discussions took place around the policy aspect, the framework alignment, the positive steps already witnessed and the route ahead for the sector including the roadblocks that are getting in the way of further improvements. Speaking to TXF about the Whiter Paper update, Chris Mitman, co-chair of the ICC Sustainability Working Group (ICC SWG) said: “It’s clear from this White Paper update that the vast majority of export finance participants – banks and ECAs – have individually made step changes in their response to the SDG delivery challenge. It’s also clear at an industry level there are encouraging signals from the EU and the majority of the Berne Union membership that a fundamental reform of the regulatory framework – most notably the OECD consensus – is required.” He added: “It’s critical therefore, that those few who are fortunate enough and have the privilege of holding seats at these unprecedented OECD modernisation discussions, take this once in a lifetime opportunity to put the export finance industry in a fundamentally stronger position to contribute meaningfully to the delivery of the SDGs."

https://www.txfnews.com/articles/7503/Progress-within-export-finance-on-sustaina...


WFW advises HSBC on US$300m SACE Facility for Bahrain's nogaholding

(WFW, London, 9 February 2023) Watson Farley & Williams (“WFW”) advised HSBC Bank Middle East Limited, acting as Export Credit Agency (ECA) Co-ordinator and Sole Structuring Bank, and HSBC Bank plc (jointly “HSBC”) as Agent and Sustainability Co-ordinator, on a US$300m Push Facility guaranteed by the Italian Export Credit Agency (“SACE”) to the Oil and Gas Holding Company B.S.C. (“nogaholding”) for financial support for key energy projects in the Kingdom of Bahrain. Under this financing, nogaholding commits to pre-agreed sustainability objectives. The 10-year financing structured as a sustainability-linked loan is part of SACE’s Push Strategy programme and aims to increase business opportunities for Italian exporters, strengthening SACE’s positioning in a strategic region for Italian exports. The Push Strategy primarily targets local counterparts of Italian exporters – selected and leading foreign buyers and provides access to medium to long-term financing guaranteed by SACE to support their investment and growth plans.

https://www.wfw.com/press/wfw-advises-hsbc-on-us300m-push-facility-with-sace-for...


The French Mistral: The Case of the Russian Sale and Its Aftermath

(SLD Info, Paris, 16 February 2023) France took a financial hit of €409 million ($440 million) as a result of  its 2015 cancellation of the sale of two helicopter carriers to Russia, the national audit office said in its report on French arms exports. “In total, taking into account the result of negotiations with Russia, cancellation of payments, payments to Naval Group, modifications and the sale of the ships to Egypt, this transaction cost France €409 million,” the independent office said in its report, Support for Export of Military Matériel. The then French president, François Hollande, cancelled in August 2015 a controversial sale of the Mistral class warships, under pressure from the U.S., central European and Baltic nations, after Russia seized in 2014 the Crimean peninsula from Ukraine. France paid Russia total reimbursement of €949.75 million for cancelling the order for the Mistrals, comprising a core payment of €892.9 million, and a further €56.8 million, the Sept. 15 2015 National Assembly report said. Egypt’s purchase of the two Mistrals followed Cairo’s 2015 order for French weapons worth €5.2 billion for 24 Rafale fighter jets, a FREMM multimission frigate, and air-to-air and naval missiles. Coface consistently made money between 2010-2021, with premiums exceeding claims, the report said, with only 2015 showing a net loss of €82 million due to the claims made on cancellation of the Mistral deal with Russia. The sale to Egypt limited the amount of claim, the report said.

https://sldinfo.com/2023/02/the-french-mistral-the-case-of-the-russian-sale-and-...


Lessors & ECAs lead rhuge Air India jet order while Kenya Airways defaults on EXIM

(Reuters, Bengaluru, 15 February 2023) As global aerospace savours a record Air India 500-plane deal cheered by world leaders, it is the turn of leasing companies to line up for a piece of the action. "The large majority of these aircraft are likely to be financed through sale-and-leasebacks with perhaps 20% of the financing come from the (Western) export credit agencies," said aviation adviser Bertrand Grabowski. Experts say the mainly Dublin-based lessors, who rent jets out for a monthly fee, could play a significant role in financing the Tata-owned airline's Airbus and Boeing spree. In other news, the Export-Import Bank of the United States issued Kenya a default notice for delayed payment of a $454 million loan that the government borrowed to fund Kenya Airways. The flag carrier defaulted on the part of its $525 million loan from Exim, which the Kenyan government guaranteed. The Kenya National Treasury plans to reduce Kenya Airways' state funding by $79.8 million, taking it from $239.5 million to $159 million, according to its 2022-23 supplementary budget. The treasury is reducing its support for the flag carrier in line with the government's strategy to lessen the airline's dependency on state funds by the end of 2023, although the airline will receive $283 million in financial aid from the state to continue operations.

https://www.reuters.com/business/aerospace-defense/lessors-lead-rush-finance-hug...


Public Financing as a Critical Path Forward to a Just Energy Transition in Africa

(Creamer Media's Engineering News, Pretoria?, 13 February 2023) With the world population recently crossing the 8 billion mark and Africa expected to contribute more than half of the projected increase in the global population up to 2050, now more than ever, access to reliable, sustainable, and affordable energy is critical for the continent. Given the historical strain between developed economies (which modernized with fossil fuels) and developing economies (now being asked to forgo this route) [while developed country ECAs urge them to expand fossil fuel production!], it is evident that sustainable, long-term global cooperation and energy security will be required to address the need for Africans to have access to sustainable, reliable, and affordable energy... Electricity generation in South Africa and Nigeria accounts for more than 80% of GHG emissions on the continent. In South Africa, coal-fired generation currently accounts for more than 70% of installed capacity and is expected to remain the primary power generation source through 2030... South Africa’s Integrated Resource Plan aims to install 3GW and 9.6GW of solar and wind capacity respectively between 2023 and 2028 as well as  3GW of gas by 2030. In contrast, Nigeria, on the hand has about 13 GW of installed generation capacity, largely dependent on hydropower (12.5%) and thermal power (87.5%). Of this, only 3.5 GW to 5 GW are typically available for onward transmission to the final consumer. Self-generation installed capacity via diesel generator units is estimated to be about 25 GW... Public capital plays an essential role in accelerating energy infrastructure projects in both developed and developing markets. Developing markets especially need continued government-supported financing for renewables and gas power generation to enable an equitable energy transition... To meet global decarbonization goals while continuing to drive electrification and raise the standard of living in developing markets, ECAs and DFIs should strive to become even more engaged to support a broad range of decarbonization technologies. [We ask, what balance is necessary, support of new natural gas power generation projects to replace existing or planned coal assets, or African renewable sources which do not put the onus on Africans to save the planet while sustaining northern consumption excess?]

https://www.engineeringnews.co.za/article/public-financing-as-a-critical-path-fo...


Swedish Export Credit (SEK) Securities Exchange Act Form 6-K

(Street Insider, Birmingham, MI, 1 February 2023) SEK Year End Report 2022: Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized. February 1, 2023 Swedish Export Credit Corporation, Magnus Montan, Chief Executive Officer. SEK has maintained a strong business flow during the year, including in the fourth quarter. New lending in the fourth quarter amounted to Skr 34.8 billion, and Skr 133.2 billion for the full year, which was the highest ever new lending volume in the space of one year... Overall, the credit portfolio has an extremely high credit quality and SEK often uses risk mitigation measures, primarily through guarantees from the Swedish Export Credit Agency (EKN) and other government export credit agencies in the Organisation for Economic Co-operation and Development (OECD), which explains the low provision ratio.... New lending Skr 133.2 billion (2021: Skr 77.0 billion), new green lending Skr 7.4 billion [Note "green" is 9.6% of all new lending] (2021: Skr 11.5 billion; new green borrowing Skr 9.0 billion (2021: Skr 6.1 billion)

https://www.streetinsider.com/SEC+Filings/Form+6-K+SWEDISH+EXPORT+CREDIT+For%3A+...


Finnvera Group 2022 Financial Statements

(Yahoo Finance, Helsinki, 16 February 2023) “Despite the impacts of the coronavirus pandemic, the war launched by Russia and the uncertain operating environment as well as inflation, Finnish companies were very active in 2022, and the demand for Finnvera’s financing remained at a high level. Finnvera granted domestic loans and guarantees amounting to EUR 1.0 billion (1.5). More than 90% of the financing was allocated to Finnvera’s strategic priorities, that are start-ups, companies aiming for growth and internationalisation and, for example, transfers of ownership. Finnvera granted EUR 5.9 billion (4.6) in export credit guarantees and special guarantees, and EUR 0.9 billion (0.7) in export credits. The largest individual financing projects concerned forest sector deliveries to Brazil and telecommunications sector deliveries to the United States and Japan. Finnvera has paid a total of EUR 100 million in compensation for liabilities at the beginning of February 2023. The final amount of Finnvera’s losses will be determined later. The loss provisions for exposure in Russia remained unchanged, the loss provisions made in the cruise shipping sector were reduced and the loss provisions for the domestic financing increased in the last quarter of the year. Due to the war and arrangements necessitated by sanctions, Finnvera’s exposure relating to Russia more than halved to EUR 422 million during the year,

https://uk.finance.yahoo.com/news/report-board-directors-financial-statements-09...


New ECGC policies to support Indian Exporters: Economic Survey Report 2023

(Taxcan, New Delho, 1 February 2023) The Economic Survey Report 2023 points out the significance of new Export Credit Guarantee Corporation (ECGC) policies to support Indian Exporters and the expectational changes by the 2023 Budget. The Export Credit Guarantee Corporation (ECGC) supports Indian exporters and banks by providing export credit insurance services. The new scheme launched in July 2022, under its ECIB products, has the enhancement of the mechanism of insurance cover to banks providing pre-shipment and post-shipment financeto 90 per cent from an average coverage of 70% for accounts with an export working capital limit of up to X20 crore to support small exporters. This framework could largely reduce the net demand for foreign exchange, the US dollar in particular, for the settlement of current account-related trade flows. Further, the use of INR in cross-border trade is expected to mitigate currency risk for Indian businesses. The Key aspect of this was that it could assist Indian exporters in getting advance payments in INR from overseas clients and in the longer term promote INR as an international currency once the rupee settlement mechanism gains traction.

https://www.taxscan.in/new-ecgc-policies-to-support-indian-exporters-economic-su...


Pandemic, disasters, war: Michal Ron looks back on Berne Union Presidency

(Global Trade Review, London, 30 January 2023) Michal Ron was elected president of the Berne Union, the international association for the export credit insurance industry, at a particularly unstable time for global trade. In an exclusive interview with GTR, she looks back on her two-year term, which included major shocks to the trade credit insurance sector, beginning with a global pandemic and ending in war in Europe. "Starting with a global pandemic, it was already in one of the worst moments, during lockdown. Then we had a very high number of natural disasters… all a consequence of climate change. And then as if that wasn’t enough, we had the war in Ukraine, at the very heart of Europe. One of my objectives when I began was definitely inclusivity and giving a voice to the lesser-known emerging markets, that multilateralism approach... Another was climate. Climate for me was one of the biggest pillars of my presidency. We created a working group task force on climate that included not just members of the Berne Union, but also the banking sector, development finance institutions and multilaterals. So that has been extremely effective and helpful for those of us who are, to an extent, lagging behind in terms of transformation towards greener, renewable energy, the circular economy... I also opted for a geographical region as an area of focus, because of its potential, which is the Sub-Saharan Africa region. Not everyone exports to, or is active in, that continent. But this is still the area where the largest growth, both trade and GDP, per annum is forecast. It is a very complex, and we could say also a particularly challenging region to operate in... My biggest regret for this period was also on the multilateralism front. As a result of the Ukraine war, we had to suspend the membership of the Union for two countries, Russia and Belarus. It went against all my past ideology, in terms of professional conduct on export credit and because it goes against the apolitical nature of the Berne Union. It was the first time ever that members were suspended on a geopolitical basis. It was petitioned by many of the Berne Union members, and it became inevitable when the UN came out with a resolution last March, condemning both countries on the international front, and sanctions were introduced. GTR: The war has also caused major energy price hikes; do you think export credit agencies (ECAs) are going to play a bigger role in helping secure imports, like the recent deals Euler Hermes has guaranteed with Trafigura for German gas and strategic commodities imports? Ron: We call it a strategic import. It might have different names in different countries, but that’s what we’re looking at. It has become part of many ECAs’ portfolios and we are seeing the number increasing day by day... GTR: Does ECA support for gas potentially contradict some climate goals, especially for members of the Export Finance for Future, who have committed to phasing out support for fossil fuels? Ron: There is no one-size-fits-all solution to this issue. You have countries that are very adventurous in terms of climate change. Very few, but still some, have already declared a net-zero strategy already commencing on the first of January [2023]. But let’s not forget that so far we are talking about four ECAs... But then you have countries such as Germany, such as Italy, that have been very dependent on gas. This is clearly an issue that has internal contradictions in terms of what to do about public support for fossil fuels. We obviously have a situation where we need to take into account a gradual phasing out, rather than an abrupt one point in time. At the Berne Union we’re doing a lot of information-sharing seminars in order to learn from more adventurous and greener export credit agencies and companies, insurers: how they do it, how they got there, how are they using scientific criteria to monitor progress? We are, in parallel, grappling with the complexity of ensuring additional sources of energy. I think most of us will not go back to the worst offenders such as coal-based plants.

https://www.gtreview.com/news/global/pandemic-disasters-war-michal-ron-looks-bac...


What's New for January 2023

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions?

Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • Public Financing as a Critical Path Forward to a Just Energy Transition in Africa
  • Trade Finance In Wartime
  • Heads of G7 Export Credit Agencies Express Support for Ukraine
  • Court finds UKEF’s $1.15 bln funding for Mozambique LNG project lawful
  • UKEF signs deal with Egyptian construction titan to boost post-Brexit trade with Africa
  • "Green" Hydrogen: What role for ECAs?
  • Comparing Government Financing of Reactor Exports
  • Saudi and Italian ECAs sign MoU to enhance trade cooperation
  • Mexico Expects State Oil Giant Pemex to Pay Its Debt Without Government Help
  • Chinese export insurer scales up support for foreign trade
  • Spain's CESCE restricts fossil fuel finance, but leaves major gas loopholes
  • India extends aid worth USD 3.9 billion to help Sri Lanka face economic crisis
  • Uganda cancels $2.2bn Chinese rail contract, signs with Turkey
  • GE secures €1bn agreement with Polish ECA
  • Finnvera change signals new ECA opportunities for SMEs
  • Dutch climate expenditure audit reveals inconsistencies

Public Financing as a Critical Path Forward to a Just Energy Transition in Africa

(Engineering News, Johannesburg 12 January 2023) The path to decarbonizing the energy sector is not a “one-size-fits-all” between developed and developing markets. Given the historical strain between developed economies (which modernized with fossil fuels) and developing economies (now being asked to forgo this route), it is evident that sustainable, long-term global cooperation and energy security will be required to address the need for Africans to have access to sustainable, reliable, and affordable energy. If we truly want to increase electrification in developing countries in Africa and help provide reliable, affordable, and sustainable energy, policy makers and financial institutions must partner with project sponsors to tailor capital solutions that best fit the region and its countries. ECAs and DFIs along with commercial banks and other multilaterals play a critical role in enabling access to the capital required to deliver a more just and equitable energy transition today and for future generations. In a recent opinion piece, Jonathan Bell, Editor in Chief of TFX News asks "When will sub-Saharan Africa be able to properly see the light?' and addresses "the jokers that think such countries ought to be moving straight to renewables – they need to ask how could they pay for such projects, and how could any related debt be repaid?" With respect to the Friends of the Earth opposition to the Mozambique LNG project he argues that "some of [those] volumes to be exported were destined to be used in power generation to replace coal and oil generators - a move which would lower carbon emissions globally." [What's New Editorial comment: Given that northern industrial development was largely financed on the backs of African slaves, one could also ask why we must hold back on tightening our own belts and coming up with the admittedly huge means to pay for their carbon free investments, in reparation for what we got from Africa, instead of begging for the delay of a long overdue "just" transition to keep ourselves warm.]

https://www.engineeringnews.co.za/article/public-financing-as-a-critical-path-fo...


Trade Finance In Wartime

(Global Finance, New York, 3 January 2023) According to the World Bank, Ukraine’s GDP over 2022 will have contracted by some 35%. Further decline is expected for 2023, as the full economic implications of Russia’s war become clear. The huge drop-off in trade has of course severely impacted trade finance. Many of the correspondent banks that used to do regular business pulled away, while long-term financing projects have been pretty much shelved across the board. ECA coverage is scarce in the extreme. In many cross-border transactions, cash is king. The international media has rightly focused on the huge disruptions to supply lines, including shipments of Ukrainian grain from Black Sea ports, and Russian targeting of Ukraine’s energy infrastructure has cast much of the population into freezing darkness and has massively disrupted business. With foreign banks and customers understandably jittery, the role of international financial institutions like the International Finance Corporation in guaranteeing transactions has been key. The European Bank for Reconstruction and Development (EBRD) has firmly committed to supporting Ukraine. Ukrexim’s Shchur echoes this, “At such a fateful time, we really want to encourage prominent foreign banks and ECAs to become more actively involved in trade finance operations here.

https://www.gfmag.com/magazine/january-2023/trade-finance-ukraine-russia-war


Heads of G7 Export Credit Agencies Express Support for Ukraine

(UKEF, London, 22 January 2023) Acknowledging the G7 Leaders’ Statement on Support for Ukraine, as heads of the official export credit agency (ECA) schemes of the G7 nations – Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States of America – we wish to express our ongoing support for Ukraine and for its reconstruction efforts and our unwavering solidarity with the Ukrainian people for as long as it takes. Since Russia’s full-scale invasion of Ukraine, the G7 ECAs have remained open for underwriting Ukrainian business opportunities in solidarity with Ukraine during this difficult time. We also continue to participate in the wider dialogue with other ECAs and multilateral institutions, including within international fora such as the Berne Union, to find ways to enhance cooperation, share information and leverage our collective platforms to bring visibility to and stimulate support for Ukraine.

https://www.gov.uk/government/news/heads-of-g7-export-credit-agencies-joint-stat...


Court finds UKEF’s $1.15 bln funding for Mozambique LNG project lawful

(Offshore Energy, Schiedam, 13 January 2023) A London court has ruled that the UK government’s funding of up to $1.15 billion of financing for the Mozambique LNG project led by French energy major TotalEnergies is lawful. According to reports by Reuters, the decision by London’s Court of Appeal dismissed an appeal by the environmental group Friends of the Earth. The group argued that financing for the project was permitted after it was incorrectly judged to be compatible with the Paris Agreement and its goal to limit global warming to 1.5 degrees. The total emissions for the new gas field, which research by the environmental group finds would total some 4.5 billion tonnes of greenhouse gases (GHG) over its lifetime – more than the combined annual emissions of all 27 EU countries, were not calculated as part of the government’s approval process or evaluated against global climate goals, the environmentalists warned. At the time of filing the legal challenge, Leigh Day solicitor Rowan Smith, who represented Friends of the Earth, noted that the Court of Appeal’s answer is likely to be a “defining moment in climate change litigation”.

https://www.offshore-energy.biz/report-court-finds-uks-1-15-bln-funding-for-moza...


UKEF signs deal with Egyptian construction titan to boost post-Brexit trade with Africa

(City A.M., London, 20 January 2023) (UK Export Finance has agreed a post-Brexit deal with one of Egypt’s biggest construction and engineering firms, Hassan Allam Holding, to increase cooperation across Africa. Hassan Allam has a vast a portfolio of projects ranging from solar power and water to petrochemicals facilities, museums, airports, and thousands of kilometres of roads and bridges. UKEF has up to £2bn available to support projects in Egypt, as Britain looks to spread its wings after leaving the European Union and trade globally.

https://www.cityam.com/egypt-africa-uk-export-finance-deal/


"Green" Hydrogen: What role for ECAs?

(ECA Watch, Ottawa, 30 January 2023) A series of articles appearing in our Google Alert searches for "export Credit" point to a number of interesting pieces on ECAs and hydrogen. The IEA has forecasted the global green hydrogen market to grow from almost zero in 2021 to 9-14 metric tons per annum (mtpa) in 2030 and 125-300 mtpa by 2050. Exports are expected to account for 12 mtpa of low-carbon hydrogen by 2030, of which approximately 90% is expected to be "green" hydrogen. Today, less than one percent of current hydrogen production is low-carbon. This means most of the hydrogen we make comes from fossil fuel plants that release carbon into the atmosphere. Development of the green hydrogen industry will require substantial capital and the financing for such projects will have to borrow more from the precedents of offshore wind and LNG undertakings, an Oxford Institute for Energy Studies said in its latest study. That study is based on the project financing cost of what it called an ‘archetype’ project wherein 1 GW of solar power is used to make green hydrogen, which is converted to 250,000 tons per annum  green ammonia for export with a capital cost of $2 billion. Last month’s second Green Hydrogen Summit in Muscat brought together leaders in every aspect of the hydrogen value chain from production and transportation to applications and storage.  Spearheaded by the Omani government, the Summit demonstrated the Sultanate’s ambition to be a global leader in green hydrogen.




Comparing Government Financing of Reactor Exports

(Columbia University, New York, 25 August 2022) This report, part of wider work on nuclear energy at Columbia University’s Center on Global Energy Policy, compares the financing terms offered between 2000 and 2021 by the world’s major exporters of nuclear power plants: Russia, France, the Republic of Korea (ROK), China, and the United States. Decarbonizing the world’s energy supply by 2050 will require financing low-carbon energy projects at a cost of upwards of trillions of dollars. Nuclear energy is one of the few dispatchable low-carbon energy resources, and studies by the International Energy Agency have estimated a possible doubling of nuclear power as part of scenarios for achieving net-zero greenhouse gas emissions by midcentury. Large, capital-intensive projects such as nuclear power plants can be challenging for some countries to finance, however. As a result, countries wishing to build nuclear reactors look for attractive financing from supplier nations in the form of loans and equity.

https://www.energypolicy.columbia.edu/publications/comparing-government-financin...


Saudi and Italian ECAs sign MoU to enhance trade cooperation

(Arabian Business, Abu Dhabi, 27 January 2023) The agreement envisages establishing a framework for mutual reinsurance to enhance the presence of Saudi exports in Italian markets. Saudi Export-Import Bank CEO Saad bin Abdul Aziz Alkhalb hailed the agreement as a step forward in the bank’s efforts to improve and diversify Saudi non-oil exports and enhance their competitiveness, in addition to providing funding for Saudi exports and insurance services and export credit insurance with competitive advantages in line with the targets of the Kingdom’s Vision 2030 to increase the value of non-oil exports from 16 percent to 50 percent of the non-oil GDP.

https://www.arabianbusiness.com/politics-economics/saudi-export-import-bank-and-...


Mexico Expects State Oil Giant Pemex to Pay Its Debt Without Government Help

(Yahoo News, Mexico, 3 January 2023) Mexico’s Finance Ministry expects Petroleos Mexicanos to pay debt coming due in the first quarter without government help. Refinancing debt could include but won’t be limited to bank loans, bond issuance, direct financing or financing guaranteed by export credit agencies. After providing the oil company with financial support in recent years, the Finance Ministry now wants Pemex to foot the bill itself unless it doesn’t have enough cash to do so by the end of the quarter... Pemex is the world’s most indebted oil major, with financial obligations of $105 billion by September 2022. It is under enormous financial strain as the Mexican government wants it to halt oil exports and invest in loss-making refineries — all of which while the company fails to stem long-term production declines. Mexico’s oil driller has 188 billion pesos in amortizations due in 2023 and must maintain zero net indebtedness in real terms, it said in its annual financing plan.

https://news.yahoo.com/mexico-expects-state-oil-giant-184347210.html


Chinese export insurer scales up support for foreign trade

(Xinhua, Beijing, 14 January 2023) SINOSURE stepped up efforts to boost the country's foreign trade in 2022, data from the company showed on Saturday. The insurer handled underwriting totaling 899.58 billion U.S. dollars for insured businesses throughout the year, serving over 170,000 clients, it said.  Of the total, 745.16 billion dollars was short-term export credit insurance, up 10.2 percent year on year. The underwriting for small and medium-sized enterprises amounted to 226.78 billion dollars, a 15.7 percent increase from a year earlier...  The company added that it also increased insurance support to stabilize industrial and supply chains, nurture new business models, and boost services exports. SINOSURE is a state-funded and policy-oriented insurance company that promotes China's foreign economic and trade development and cooperation. It was officially launched and put into operation in 2001, and its service network now covers the whole country.

https://english.news.cn/20230114/fc4382e5ff0548a7b77ce5eee3fc97ea/c.html


Spain's CESCE restricts fossil fuel finance, but leaves major gas loopholes

(Price of Oil, Washington, 23 January 2023) Spain has released a new policy for CESCE, the Spanish government export credit agency, restricting public finance for oil and gas. Spain is a major public financier of international fossil fuel projects, providing USD 2.1 billion a year between 2018-20 to fossil fuels, and USD 47 million per year to clean energy, or 97.8% to fossil fuels and just 2.2% to clean energy. Loopholes include support for Liquefied Natural Gas (LNG) processing, transportation and storage, as well as a widely-defined loophole for gas power that could mean gas power plants could be approved in most developing countries. This policy falls short of a major pledge Spain made at the 2021 COP26 UN climate summit to stop financing fossil fuel projects.

https://priceofoil.org/2023/01/23/spains-export-credit-agency-restricts-fossil-f...


India extends aid worth USD 3.9 billion to help Sri Lanka face economic crisis

(Asia News Initiative, New Delhi, 14 January 2023) India's EXIM bank and State bank of India extended export credit facilities worth USD 1,500 million to Sri Lanka for the import of essential commodities. India has extended aid worth USD 3.9 billion to help Sri Lanka sustain itself in face of the acute economic and financial crisis and meet its immediate needs such as medicines, cooking gas, oil and food items, Sri Lanka based news publication News 19 reported. In February 2022, India signed an agreement for the supply of petroleum products worth USD 500 million from the Indian Oil Company through a credit line in order to help Sri Lanka overcome its fuel shortage. This was expanded by an additional USD 200 million worth of petroleum products in April 2022.

https://www.aninews.in/news/world/asia/india-extends-aid-worth-usd-39-billion-to...


Uganda cancels $2.2bn Chinese rail contract, signs with Turkey

(The East African, Nairobi, 12 January 2023) After eight years of non-execution, the Uganda government has terminated the contract of China Harbour Engineering Company (CHEC) to build the country’s first phase of standard gauge railway (SGR), a 273km line from Malaba to Kampala. Kampala says the financing model for the project will also change, with Yapi Merkezi, which is building Tanzania’s SGR, expected to tap into its network to bring Export Credit Agencies (ECAs) on board that will finance and breathe life into the moribund project. The line, starting from the Malaba border post between Uganda and Kenya, was expected to cost $2.2 billion, but the Chinese financiers did not fund the project after casting doubt on Kenya’s SGR reaching the border to link with Uganda’s and making the project viable.

https://www.theeastafrican.co.ke/tea/business/uganda-cancels-sgr-contract-chines...


GE secures €1bn agreement with Polish ECA

(Power Engineering International, Maarssen, 20 January 2023) GE and KUKE, Poland’s Export Credit Agency (ECA), have confirmed a €1 billion ($1.1 billion) export finance co-operation agreement which will help facilitate capital investment, and enable a mix of renewable and gas power projects globally through Polish exports and supply chain. Under the agreement, GE will be the second global organisation to use KUKE’s financial instrument from its new export support programme. KUKE’s financing solutions from the programme serve to encourage industry players to invest, manufacture and export technology around the globe, including new markets, while supporting local supply chains in Poland.

https://www.powerengineeringint.com/nuclear/strategic-development-nuclear/ge-sec...


Finnvera change signals new ECA opportunities for SMEs

Global Trade Review, London, 18 January 2023) Finland’s export credit agency (ECA), Finnvera, can now offer credit directly to foreign customers of Finnish export companies after the country’s parliament approved a necessary amendment last week. Finnvera says that the goal is to give smaller export projects and small and medium-sized enterprises (SMEs) improved access to financing. “Currently, Finnvera grants large export credits to foreign buyers but only in cooperation with banks. However, it has been difficult to arrange buyer financing for export transactions amounting to less than €20mn, which has slowed down the development of the exports of Finnish SMEs in particular,” Juuso Heinilä, executive vice-president at Finnvera, tells GTR.

https://www.gtreview.com/news/europe/finnish-law-change-signals-new-export-credi...


Dutch climate expenditure audit reveals inconsistencies

(Argus Media, Amsterdam, 30 January 2023) The Dutch government does not provide a "clear and complete" overview about the state's climate expenditure, while certain fossil fuel subsidies are "at odds" with domestic climate goals, according to a report by the Dutch court of audit. The court of audit presented its findings to the Dutch parliament on 25 January, noting that the three ministries — economic affairs and climate policy, finance, and climate and energy policy — involved in reporting the state's climate expenditure did not provide consistent information. Dutch export credit agency Atradius — in charge of the country's public financing for foreign fossil fuel projects — ended all financing for export credit insurance as of this year in line with the Glasgow pledge made during the UN climate conference Cop 26 in 2021, while certain exemptions for oil and gas projects remain in place. Projects that ensure European energy supply security by reducing "unwanted" dependencies on Russian oil and gas are among those exemptions granted

https://www.argusmedia.com/en/news/2414260-dutch-climate-expenditure-audit-revea...


What's New for December 2022

What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.

If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today!

Questions? Email info-at-eca-watch.org

See all "What's New!" updates since 2005 here.

  • Germany reveals considation of 10 large international fossil fuel projects worth EUR 1 billion, despite major climate pledge
  • Fitch affirms SACE now under Italian government control
  • Canada to (mostly) stop subsidizing international fossil fuel projects
  • Canada and New Zealand map out pledges to axe ECA fossil fuel support
  • Blocking a Carbon Bomb: Tiwi Islanders prevent $4.7 billion Barossa offshore gas project in Australia
  • What ETMs can and can’t do for coal retirements
  • Australia in talks to help PNG buy $1.1 bln PNG LNG stake
  • Germany accelerates Europe’s “Neo-Scramble for Africa”
  • Germany suspends ECA guarantees for business with Iran amid protests
  • Legal challenge over UK funding of Mozambique gas project goes to appeal court
  • Who watches Czech state’s ECA obligations to big businesses?
  • Are French ECAs ready to join early reconstruction of Ukraine?
  • Poseidon Principles: [Only] 7 of 28 banks in line with IMO’s GHG reduction target
  • Jaguar Land Rover lands UKEF-backed export loan
  • South African exporters assured Export Credit Insurance Corporation now has expanded cover
  • Chinese ECA sees underwriting growth of 9%
  • EU adopts new package of sanctions against Russia

Germany reveals considation of 10 large international fossil fuel projects worth EUR 1 billion, despite major climate pledge

(Oil Change International, Washington, 7 December 2022) A German government State Secretary has revealed a pipeline of fossil fuel projects that shows a lack of seriousness about keeping Germany’s climate promise. The Government stated that it “currently has ten individual applications for cover under review for the granting of an export credit guarantee for supplies and services to Brazil, Iraq, Uzbekistan, the Dominican Republic and Cuba with a total volume of around one billion euros, which are connected with fossil energy projects.” Despite climate rhetoric, Germany still funding more fossil fuels than renewable energy and provides more government-backed international finance for fossil fuels than Saudi Arabia or Russia. Regine Richter, Energy and Finance Campaigner at Urgewald, said: “The German government needs to understand that you can’t say you favour climate protection and at the same time support massive fossil fuel projects. While the German government is tight-lipped about KfW loan applications, the applications for export finance alone add up to more than €1 billion for fossil fuel projects. This must end if we are to stand a chance to stay within the 1.5°C temperature limit.”

https://priceofoil.org/2022/12/07/revealed-german-government-considering-10-larg...


Fitch affirms SACE now under Italian government control

(Fitch, Milan, 29 November 2022) Fitch Ratings has affirmed that SACE's shares were transferred back to the national government from Cassa Depositi e Prestiti SpA (BBB/Stable) in March 2022, changing SACE's mission from an unregulated export credit insurer to a government agency underwriting insurance policies backed by a state guarantee. The Ministry of Finance [now] retains governance rights over SACE and outlines operational features, according to which SACE operates on behalf of the national government.  Fitch expects insurance-related costs to increase in 2023 alongside the macroeconomic volatility triggered by the Russia-Ukraine war and rising commodities prices that could adversely affect Italian export and domestic activities in the short term. SACE's exposure to Russia, Ukraine and Belarus is limited and was fully covered with EUR91 million provision as of June 2022. As we noted last month, the Italian government is considering support for international fossil fuel projects that would emit 3.5 times Italy’s annual emissions, despite major climate promises. Italy is also considering the nationalization of an oil refinery owned by Russian energy giant Lukoil as well as  providing additional guarantees by Italian export credit agency SACE for the purchase of oil outside Russia and selling the refinery to a third-party investor.

https://www.fitchratings.com/research/international-public-finance/fitch-affirms...


Canada to (mostly) stop subsidizing international fossil fuel projects

(Greenpeace, Toronto, 12 December 2022) Canada has joined the growing ranks of nations promising to end international financing of fossil fuels (though there are some worrisome exceptions). The Financial Post immediately warned that without taxpayer subsidies it would be more expensive for private companies to build new fossil fuel projects which… is the whole point of the exercise. The new policy applies across all federal departments, agencies and Crown corporations but will predominantly impact Export Development Canada (EDC), a Crown corporation with a long history of funnelling billions in support to the oil and gas industry. As of January 2023, EDC (and the rest) will have to stop funding (most) fossil fuel projects and redirect those resources to support the clean energy transition.

https://www.greenpeace.org/canada/en/story/55800/canada-to-mostly-stop-subsidizi...


Canada and New Zealand map out pledges to axe ECA fossil fuel support

(Global Trade Review, London, 14 December 2022) Canada and New Zealand have mapped out how they will put into action pledges to scrap ECA support for fossil fuel projects, ahead of an end-of-year deadline. At last year’s Cop26 summit in Glasgow, thirty-nine countries vowed to end public finance backing for fossil fuels by the end of 2022, which theoretically bars ECAs and export finance institutions from providing fresh backing for such projects from January 1, 2023. Canada was the second-biggest public financier of fossil fuel projects in the G20 between 2019 and 2021. On the same day, EDC’s fellow ECA New Zealand Export Credit (NZEC) outlined a similar policy to cement its Cop26 commitment, including an end to support for fossil fuel exploration, extraction, transportation, storage and refining, as well as power plants and supporting infrastructure and services. Even for a party which is “in the fossil fuel energy sector” but carrying out an unrelated transaction, “applications may be considered only where that party has a documented and realistic transition plan consistent with a 1.5°C warming limit and the goals of the Paris Agreement [on combating climate change],” the NZEC policy says. The release of NZEC’s policy means there are only five governments that are yet to outline how they will meet their commitments to axing public finance for fossil fuels by the end of this year, according to Oil Change International: Germany, Italy, Portugal, Spain and Switzerland. Of these, Germany, Italy and Spain agreed earlier this year to publicise their plans to wind down ECA support for fossil fuels as part of the Export Finance for Future (E3F) alliance, but so far have not.

https://www.gtreview.com/news/global/canada-and-new-zealand-make-good-on-pledges...


Blocking a Carbon Bomb: Tiwi Islanders prevent $4.7 billion Barossa offshore gas project in Australia

(Oil Change International, Washington, 14 December 2022) In a landmark decision in September, the Federal Court of Australia ruled that Santos Ltd, one of the world’s top 20 largest oil and gas companies, would not be allowed to drill in the Barossa gas fields off the coast of northern Australia. The Court ruled that Santos had failed to consult Tiwi Traditional Owners. Santos appealed the decision, but this was in vain. Two weeks ago, the appeal was rejected, further solidifying legal victory for the Tiwi Islander Plaintiffs. The Barossa project alone included over $1 billion USD in public finance support from the Japanese and Korean governments’ export credit agencies (ECAs), Japan Bank for International Cooperation (JBIC), Export-Import Bank of Korea (KEXIM) and Korea Trade Insurance Corporation (K-Sure). Santos and the Australian Government assured these ECAs that the project approvals were solid, even after Tiwi Island people had warned them about lack of free, prior and informed consent, and despite the fact that extraction from these wells would be completely at odds with Australia’s climate obligations.

https://priceofoil.org/2022/12/14/blocking-a-carbon-bomb-tiwi-islanders-prevent-...


What ETMs can and can’t do for coal retirements

(TXF, London, 30 November 2022) The evolving science of coal plant retirement financing has had a busy couple of weeks with the Asia Development Bank signing a 14 November memorandum of understanding re potential early retirement of the Cirebon Electric Power for unit 1 of the 1,660MW Cirebon coal-fired plant, using the ADB’s Energy Transition Mechanism (ETM). The day after, on the sidelines of the same G20 summit where the Cirebon MOU was signed, the US, Indonesia and a raft of other developed countries launched the Just Energy Transition Partnership (JETP), a $20 billion combination of grants, concessional loans, commercial loans, ECA guarantees, and private investment. The programme will cover a big expansion in renewables, and the retirement of coal capacity whose emissions cannot be rebated. Aside from the summit-friendly but content-light announcements, there was further progress on the first coal retirement financing in Asia for a 244MW Philippino coal plant.

https://www.txfnews.com/articles/7473/What-ETMs-can-and-cant-do-for-coal-retirem...


Australia in talks to help PNG buy $1.1 bln PNG LNG stake

(Reuters, Sydney. 6 December 2022) Papua New Guinea's state-owned Kumul Petroleum is in talks with Australia's export credit agency to help fund a $1.1-billion acquisition of a 5% stake in the PNG LNG project from Santos Ltd (STO.AX). Santos announced in September that Kumul had made a binding offer to buy a 5% stake in PNG LNG from the company for $1.1 billion, subject to the other joint venture partners, which include ExxonMobil Corp and Japan's JX Holdings Inc, waiving their pre-emptive rights to match the offer.

https://www.reuters.com/business/energy/australia-talks-help-papua-new-guinea-bu...


Germany accelerates Europe’s “Neo-Scramble for Africa”

(TFI Global News, Noida Uttar Pradesh, 29 December 2023) German-African Business Association: Ever since the Russia-Ukraine war the importance of Africa has skyrocketed. Now every major power today wants to expand their footprint in the continent. Today there is a great surge of foreign interest in Africa. From the US, China, Russia to major European powers like France, UK and Germany, all want a decent share of influence in the African continent. However, are any of the powers actually interested in ensuring the well-being of Africa? The German-African Business Association says that it represents around 85% of German businesses active in Africa. It now wants the government to give greater support through improved conditions for export credit insurance and investment guarantees from the German government.

https://tfiglobalnews.com/2022/12/29/germany-accelerates-the-europes-neo-scrambl...


Germany suspends ECA guarantees for business with Iran amid protests

(Big News Network, Berlin, 29 December 2022) Germany announced that it is formally suspending export credits and investment guarantees for business in Iran, after the brutal crackdown on protests by authorities in Tehran. The instruments suspended are export credit guarantees, which protect German companies from losses due to unpaid exports, as well as investment guarantees, which aim to protect direct investments by German companies from political risk. These instruments for projects in Iran were suspended for decades until there was a "short phase of opening" from 2016, as a result of Iran's agreement with world powers, including Germany, on its nuclear program, the ministry said.

https://www.bignewsnetwork.com/news/273283920/germany-suspends-guarantees-for-bu...


Legal challenge over UK funding of Mozambique gas project goes to appeal court

(Drill or Drop, London, 6 December 2022) Government approval of $1.5bn financing for a liquified natural gas project in Mozambique has been challenged at the Court of Appeal this morning (Tuesday 5 December 2022). A year ago, a case brought by Friends of the Earth ended in deadlock, when two High Court judges disagreed on the verdict. The challenge was dismissed so that it could be heard again in the appeal court. Friends of the Earth will argue at the new hearing that the financing, through the government’s export credit agency, UK Export Finance (UKEF), was unlawful. It was permitted, the environmental organisation will say, after the project was incorrectly judged to be compatible with the Paris Agreement on climate change. Friends of the Earth has estimated that the facility would emit 4.5bn tonnes of greenhouse gases over its lifetime – more than the combined annual emissions of the 27 EU countries. The government has until March 2023 to revise its net zero strategy after losing a challenge by Friends of the Earth, ClientEarth and the Good Law Project. The high court ruled that the government should outline exactly how the net zero policies will achieve emissions targets. A decision is due early in 2023.

https://drillordrop.com/2022/12/06/legal-challenge-over-uk-funding-of-mozambique...


Who watches Czech state’s ECA obligations to big businesses?

(Paradise News, Calabar Nigeria, 10 December 2022) Czech state-owned ECA EGAP has obtained a CZK 2 billion (US$88.6M) loan from the Czech Republic’s COVID aid program for Czech steelmaker Liberty Ostrava, which is closely linked to Greensil, a company embroiled in corruption scandal. The Czech government’s COVID-19 aid to large polluters like Liberty Steel Ostrava, which is on the verge of bankruptcy, continues to be a cause for concern.The case is another illustration of the shortage of transparency and accountability in export credit agencies (ECAs). The COVID Plus program in the Czech Republic will provide hundreds of billions of dollars to large exporters, but there is no oversight or regulation. It is the job of the state to explain which projects it backs and give reasons for doing so, but EGAP remains mum on its questionable investments.

https://theparadise.ng/covid-inquiries-who-watches-the-czech-states-obligations-...


Are French ECAs ready to join early reconstruction of Ukraine?

(Odessa Journal, Odessa, 13 December 2022) French business is interested in investing in Ukraine and is ready to participate in its early reconstruction announced First Vice Prime Minister – Minister of Economy of Ukraine, Yuliya Svyridenko, during a live broadcast from Paris on the air of the National Telethon. "We discussed what tools we, as the Government, can use to ensure that French business enters the Ukrainian market and develops Ukraine even before our victory... We offer export credit agencies that provide insurance services for export operations to expand their services to insurance of investment activities and to insure their companies entering Ukraine. We have a list of investment projects and an understanding of their prioritization, and from their side, we have financing and companies ready to invest in Ukraine. And for us, the issue of military risk insurance is important. To help attract investments without waiting for the end of the war. War is not an obstacle to investment. This is a difficult period for us, but we will get through it,” Yulia Svyridenko assured.

https://odessa-journal.com/french-business-is-ready-to-join-the-early-reconstruc...


Poseidon Principles: [Only] 7 of 28 banks in line with IMO’s GHG reduction target

(Offshore Energy Biz, Schiedam, 15 December 2022) Out of the 28 financial institutions reporting their emissions data in the third edition of the Poseidon Principles Annual Disclosure Report 2022, seven banks are aligned with the IMO’s ambition of halving shipping’s GHG emissions by 2050. The Poseidon Principles are a global framework for assessing and disclosing the climate alignment of financial institutions’ shipping portfolios pioneered in 2019 by Citi, Societe Generale, and DNB with the support of the Global Maritime Forum. The voluntary regulatory framework aims to accelerate the implementation of the sector’s green agenda while charting a path forward for banks to decarbonize their own portfolios as well.

https://www.offshore-energy.biz/poseidon-principles-7-out-of-28-banks-in-line-wi...


Jaguar Land Rover lands UKEF-backed export loan

(Institute of Export and International Trade, London, 22 December 2022) In its end of 2022 report, the IEIT notes that UK Export Finance (UKEF) is backing 80% (£500m) of a loan by 12 banks that will support the research, development and export of the next range of battery-powered Range Rovers. Jaguar Land Rover is one of the UK’s largest exporters and employs more than 28,000 staff in the UK. In 2020-21, the company sold 439,588 vehicles in 127 countries, with about 80% of its sales to export markets outside the UK. UKEF backing worth £600 million will also help Ford to expand its electric vehicle production line.

https://www.export.org.uk/news/594264/Jaguar-Land-Rover-lands-UKEF-backed-export...


South African exporters assured Export Credit Insurance Corporation now has expanded cover

(Mail & Guardian, Johannesburg, 1 December 2022) African countries’ borders are becoming more porous, allowing for greater movement of goods and services via the African Continental Free Trade Area (AfCFTA) agreement, but by its nature this comes with a lot of risk. This is where export insurance comes in: to protect an exporter against a foreign buyer’s failure to pay for goods or services for political or commercial reasons. South African companies can count themselves lucky to have export insurance available to them through the Export Credit Insurance Corporation (ECIC), which is an official export credit agency, wholly owned by the Department of Trade, Industry and Competition. The AfCFTA is the perfect platform for cross-border trade and a number of opportunities exist. Substantial reduction of tariff and non-tariff barriers that will result from the implementation of AfCFTA will indeed increase intra-Africa trade and promote regional economic development. It is unacceptable that Africa, the second largest continental landmass after Asia, with all the resources, accounts for just 4.4% of world trade.

https://mg.co.za/special-reports/2022-12-01-south-african-exporters-can-rest-ass...


Chinese ECA sees underwriting growth of 9%

(Xinhua, Beijing, 26 December 2022) China's only policy-oriented insurer specializing in export credit insurance reported steady business growth in the first 11 months of 2022. The China Export & Credit Insurance Corporation, or SINOSURE, served about 179,000 clients in the January-November period, an increase of 14% year on year. During the period, the company handled underwriting for insured businesses worth a total of US$817.93 billion, up 8.6% year on year. SINOSURE is a state-funded and policy-oriented insurance company that promotes China's foreign economic and trade development and cooperation. It was officially launched and put into operation in 2001, and its service network now covers the whole country

https://english.news.cn/20221226/60c93ba833494ea89ab7a8fe2cfa5641/c.html


EU adopts new package of sanctions against Russia

(Brussels Times, Brussels, 17 December 2022) The Council of the European Union (Council of Ministers) adopted on Friday a package of new measures intended to step up pressure on Russia in response to its ‘continuing war of aggression against Ukraine and the gravity of the current escalation against civilians and civilian infrastructure’. The EU will reinforce the sanctioning of investments by additionally prohibiting new investments in the Russian mining sector, with the exception of mining and quarrying activities involving certain critical raw materials. Export credit guarantees for investments in Russia have already been covered by previous sanction packages.

https://www.brusselstimes.com/338832/eu-adopts-new-package-of-sanctions-against-...


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