UK Export Finance (UKEF), the UK's export credit agency (ECA),
has struck new agreements at COP29 which promote the
decarbonisation of global export credit financing.
After recently committing in its sustainability
strategy to facilitate £10 billion in financing for
clean-growth projects by 2029, UKEF has now secured agreement
from like-minded ECAs to a first-ever set of decarbonisation
target-setting protocols in the sector. This will help ECAs and
export-import banks as they implement net zero targets.
Now officially endorsed by the Net Zero Export Credit Agencies
(NZECA) alliance, the new guidance supports member ECAs in
setting evidence-based climate targets.
Last year, the UN-convened NZECA became the world's first net
zero alliance comprising public finance institutions.
This is the latest chapter of UKEF's policy leadership in ECA
sustainability, coming several years after it became the first
ECA to adopt the recommendations of the Taskforce on
Climate-Related Financial Disclosures (TCFD) and publish details
of its financed emissions.
Separately, an agreement with PLN – Indonesia's state-owned
energy company – is expected to secure a future role for UKEF in
supporting their energy transition. UKEF has over £3 billion in
support available to help Indonesian buyers finance projects
which use UK goods and services.
Tim Reid, CEO of UK Export Finance, said:
Public finance organisations are hugely important to supporting
the flow of international trade.
Through guarantees and insurance, export credit support will
remain key to unlocking the critical mass of private finance
needed to enable sustainable projects – this is why UKEF has
committed to facilitate £10 billion in financing for clean-growth
projects by 2029.
These guidelines for decarbonisation target-setting are
first-of-a-kind for export credit agencies, and will help us make
meaningful progress towards net zero.
