Why ECAs?

► Fossil Fuels

ECAs remain the largest public financier of international fossil fuel expansion, regardless of the climate science consensus. Although numerous governments have taken steps to phase out ECA support for fossil fuels, united by initiatives such as the ‘Clean Energy Transition Partnership’ (CETP) or the Export Finance for Future (E3F), there are notable exceptions. ECAs lack of transparency about their fossil fuel financing remains an obstacle to accurately assess the full extent of ECAs support. Civil society remains committed to monitor the progress of the existing climate commitments and advocating for detailed, timely disclosed, public information on ECAs financing.

► Renewable Energy

Although it is imperative that we switch from fossil fuels to renewable energy, large-scale renewable energy projects also entail challenges when not properly managed. For instance, large hydro-electric projects can displace communities, inundate vast areas of fertile farmland, and submerge historically and culturally significant sites. It therefore remains key that social and environmental due diligence procedures are carefully followed and that local communities’ rights to free, prior and informed consent (FPIC) are respected.

► Mining

Recent years have seen a tremendous increase in interest for financing mining projects via ECAs, particularly when it concerns so-called ‘transition minerals’ used for the energy transition. At the same time, mining is per definition a high-impact sector, with significant social and environmental risks. In mining projects, land degradation, deforestation, pollution and forced replacements are not uncommon. Governments must ensure that ECA support for mining projects follow careful social and environmental due diligence procedures and that local communities’ rights to free, prior and informed consent (FPIC) are respected.

► Infrastructure

Export credits are used to insure projects that are generally difficult to insure, because of the scale of the project or the project country context. This means export credits are regularly used to support large-scale infrastructural projects such as ports, dams, or airports. The often violent displacement of communities, the poor compensation for their land, the loss of livelihoods, the limited benefit-sharing in the region, the inadequate due diligence standards and oversight has led to numerous problematic cases in the past. The public in a project’s host country, as well as in the ECA’s country, should be able to access project documentation from early project phase to scrutinise the procedures followed.

► OECD Common Approaches

The OECD “Common Approaches” is the framework guiding human rights and environmental due diligence for ECAs in OECD countries. First adopted in 2001, under civil society pressure, these guidelines have remained vague, differently interpreted, inconsistently applied, and largely voluntary. Even as new language on human rights and sustainability has been introduced over the years, actual implementation greatly varies and transparency remains weak. The OECD revisited and updated it in 2016 and 2024, but the inclusion of stronger safeguards, such as limiting fossil fuel support and holding ECAs accountable for environmental harm, must be improved and matched by greater transparency and public participation. Governments must adapt their export credit policies to reflect today’s urgent sustainability challenges and be open to public scrutiny and accountability.

► Blurry developmental mandates

Although ECAs do not have a development finance mandate, they have been present in international development flows and a major component of certain Global South countries’ debt. While proper debt management can lead to positive development impacts, ECAs often push countries to create debt to pay back loans for projects that are inconsistent with sustainable development, with design weaknesses, and often associated with corruption. The excessive or inappropriate country debt loads still shackles many Global South countries sovereignty and future sustainable development. ECAs were developed as a demand-driven finance instruments to support its own interests, so its mandate should remain clear and out of the developmental finance sector.