Export Credit Agencies under Scrutiny: EU's climate commitments in question

The "EU ECA Fossil Fuel Phase-Out Tracker" report by Both ENDS, Counter Balance and Oil Change International highlights a worrying lack of alignment between EU member states' export credit financing and the region's climate commitments. Despite growing global efforts towards sustainability, Export Credit Agencies (ECAs) remain significant financiers of fossil fuels, contradicting climate goals.

The report shows that only 13 out of 23 EU Member States with ECAs appear to be meeting their commitment to end export credit financing for fossil fuel energy projects by March 2022, with others falling behind.

According to the findings:

• Germany and Italy, both signatories to the global Clean Energy Transition Partnership and Export Finance for the Future (E3F), have set deadlines that allow continued investment in fossil fuels, contrary to the spirit of the March 2022 Council conclusions;
• Several Member States, including Austria, Poland, Romania, Slovakia and Slovenia, are still financing coal, oil and gas projects until 2030;
• Some Member States, including Croatia, the Czech Republic, Greece and Latvia, have yet to develop a policy to phase out export credit support for fossil fuel energy projects, disregarding the commitments made in March 2022.

The report calls for swift and decisive action by all Member States to align export credit policies with climate justice and sustainable development, and urges non-compliant countries to translate their commitments into action.