Perspectives' new study on Export Credit Agencies (ECAs) shows that there is a severe lack of domestic and international policies to decarbonise officially supported export credits which still provide large amounts of public finance support to fossil fuel projects. While some ECAs have started taking first steps to decarbonise their portfolios the speed of this process must be urgently ramped up. To this end, we recommend that the EU governments take the lead by ensuring that the EU policies for ECAs are reflecting the EU’s own climate commitments as well as well the long-term objectives under the Paris Agreement, similar to the approach applied recently by the European Investment Bank (EIB). The OECD member states should strengthen the OECD Coal-Fired Electricity Generation Sector Understanding to exclude any new coal-related projects and further expand it to the oil and gas sectors. On the national level we recommend governments to at minimum introduce policies mandating their ECAs to only finance activities in line with their NDCs, the NDCs of the host countries as well as with their bi- and multilateral climate finance. Ideally, these policies must also be in line with the overall objectives of the Paris Agreement. Finally, we recommend the national governments to increase transparency of their ECAs, notably making public the information related to their support provided to carbon-intensive activities and associated GHG emissions of their portfolios.
The study is available here.