As the European Union (EU) shifts from fossil fuels to so-called transition minerals, Export Credit Agencies (ECAs) are expected to be key finance and trade tools under recent EU policy.

But ECAs have a troubling track record, financing projects linked to human rights abuses, environmental destruction and poor community engagement. Can EU ECAs be trusted to drive a just energy transition or will they repeat the mistakes of the past?

In this briefing paper, Both ENDS with support of Counter Balance, examines the critical issues in ECAs governance that need urgent reform.

Key Issues:

  • Lack of enforceable human rights & environmental due diligence.
  • Poor transparency and limited public oversight.
  • Blurred mandates between development finance & commercial export support.

Our Recommendations:

  • Put local communities & shared benefits at the centre of decisions project financing. Strengthen human rights and environmental due diligence and standards.
  • Require responsible exit strategies and restoration plans from project developers.
  • Guarantee transparency, information disclosure and complaints mechanism from the project early phases.
  • Halt enhanced coordination between ECAs and  Development Finance Institutions (DFI) until human rights and environmental due diligence are improved and compliance with NDICI regulation and other relevant international frameworks  is ensured.
  • Further phase support to fossil fuels projects in line with the March 2022 Council conclusions on export credits.
  • Do not contribute to worsening national debt burdens in the Global South while perpetuating unequal power dynamics.
Briefing

The role of European ECAs in financing the Energy Transition

Read the Briefing