CashNews.co
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Latest chapter in advocacy for sustainable public finance from UKEF, which was the first ECA to adopt Natural Disaster Clauses and adopt TCFD recommendations.
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Bilateral agreement also signed to support use of UK export credit to back energy transition in Indonesia.
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.