Climate of export credit reporting agencies

Despite commitments to technology transfer and efforts to set up convey a clean development mechanism (CDM), climate negotiators, civil society groups, and development finance experts have overlooked some public financing institutions who’re already influencing the power-concentration of developing economies.

These institutions, referred to as export credit and investment insurance companies (ECAs), facilitate private investment in the north to developing countries. They support significant infrastructure development, yet little is famous concerning the climate implications from the projects they co-finance.

The authors evaluate ECA financing activities in developing countries from the climate perspective. The report reveals that ECAs like a group are promoting exports and investments to developing countries which will lead to lengthy-term increases in green house gas emissions.

The report’s primary findings include:

  • ECAs co-financed (through loans, risk guarantees or investment insurance) $103 billion in exports and projects for gas and oil development, fossil-fueled power, transportation infrastructure, aircraft sales, and-intensive manufacturing (chemicals, pulp and paper, and iron and steel)
  • The very best destinations of ECA financing for energy-intensive activities incorporated leading non-Annex I causes of green house gas emissions (South america, China, India, Indonesia and Mexico)
  • The seven leading industrialized economies (Canada, France, Germany, Italia, Japan, the Uk and also the U . s . States) provided the majority of the ECA financing for energy-intensive exports or projects
  • Most ECAs don’t have any formal ecological assessment policies, disclose little ecological information towards the public, and don’t assess the emissions of projects they finance.

Climate of export credit reporting agencies and projects for gas

The report proposes a reform agenda to align ECAs’ export and investment promotion objectives using the commitments governments made underneath the climate convention.

The main aspects of this reform agenda include routine estimation and reporting of projects’ green house gas emissions, development of financing mechanisms for small-scale alternative energy and-efficiency, and also the inclusion of climate-related criteria in some common ecological guidelines for ECAs.


How credit agencies work