UK Export Finance (UKEF) and other ECAs have launched a ‘Net Zero
Export Credit Agencies Alliance’ promoting the role of export
credit in supporting global net zero
This news comes as UKEF unveils multimillion-pound support for
transactions supporting climate adaptation and sustainability
across Africa and the Middle East
Announced at COP28, the partnership is supported by the UN’s
Environment Programme Finance Initiative
UK Export Finance has rallied together export credit agencies
from around the world to join a Net Zero Export Credit Agencies
Alliance being launched today at the COP28 summit.
Backed by the UN’s Environment Programme Finance Initiative, the
partnership will promote greater action from export credit
agencies and EXIM banks in achieving net zero emissions by 2050,
and will collaborate with the Glasgow Financial Alliance for Net
Zero..
The alliance currently includes UKEF, Export and Investment Fund
of Denmark (EIFO), Export Development Canada (EDC), and the
Swedish National Export Credits Guarantee Board and Swedish
Export Credit Corporation (EKN and SEK) as full members. ECAs
from the UAE, Kazakhstan and Spain have also joined the Alliance
as affiliates.
UKEF is committed to reaching net-zero in terms of its total
financed emissions by 2050; it ended all new support for overseas
fossil-fuel projects in 2021, except in very limited
circumstances. Other members of the Alliance are now following
this direction by pledging to reach net zero in their portfolios
and operations by the middle of the century.
Tim Reid, CEO of UK Export Finance, said:
Export credit agencies play a crucial role in helping businesses
to transition towards net zero and shifting finance flows towards
climate-friendly projects and investments. This new alliance
mobilises export finance in support of a common goal: achieving
global net zero by 2050 and limiting global warming to 1.5
degrees. I look forward to working with UKEF’s counterparts
around the world to support this journey.
This announcement follows a change earlier this year to the OECD
Arrangement which allows export credit agencies to offer greater
incentives for climate-friendly transactions.
Eric Usher, Head of UNEP FI, said:
Public finance has been the missing piece in the net-zero
financial landscape. ECAs are in a very strong position to
deliver more sustainable global trade and to complement the work
already being undertaken by the private finance sector, helping
to address market gaps to deliver net-zero economies by 2050.
NZECA will play an important role in supporting real economy
transition and help countries implement their commitments under
the Paris Agreement.
Inger Andersen, Executive Director of UNEP,
added:
Public finance has been the missing piece in the net-zero
financial landscape,” “Export Credit Agencies are in a strong
position to deliver more sustainable global trade and to
complement the work already being undertaken by the private
finance sector, helping to address market gaps to deliver
net-zero economies by 2050. This Alliance will play an important
role in supporting tangible economic transition and help
countries implement their commitments under the Paris Agreement.
This comes as UKEF during COP28 announces its role in securing
multimillion-pound financing for transactions which support
climate adaptation and sustainability across Africa and the
Middle East. The ECA has so far announced its role in securing
£226 million in financing for the Iraqi government to develop
over 350km of drainage infrastructure and 15 sewage treatment
stations near Hillah city – bringing clean water to 25,000 more
households.
