Paris Proof Export Support
Almost two-thirds of the export credit insurances that Atradius DSB provided in the 2012-2018 period went to the fossil energy sector. That is contrary to the climate agreements that the Netherlands signed in Paris.
In December 2015, the Netherlands signed the Paris Climate Agreement, under which global warming has to be limited to a maximum of 2 (preferably 1.5) degrees Celsius. A growing number of companies are making their production methods more sustainable and are switching to renewable energy, to minimise or even halt the negative impact of their activities on the climate. But Dutch companies do not only operate in the Netherlands. On the contrary, many of our economic activities take place abroad, and the negative effects of these activities are therefore mostly felt there. To achieve the transition to a sustainable economy, it is therefore vital that we also devote attention to making Dutch activities abroad more sustainable.
The Dutch government promotes the export of goods and services in many ways, for example with grants and tax arrangements. For very large-scale and high-risk activities abroad, it provides export credit insurance (see dossier on ECAs). Both ENDS believes that this public support for foreign trade should contribute to sustainable development for all, and not just benefit Dutch companies. This means that, to be eligible for export support, Dutch activities abroad should not be harmful to people and their environment in the countries where they take place. Furthermore, they should always be in line with the climate goals set in Paris in 2015.
Two-thirds to the fossil fuel sector
This is by no means always the case. Both ENDS analysed all of the Dutch export credit agency Atradius DSB's transactions during the 2012-2018 period, which showed that the company provided insurance to projects related to the fossil fuel sector worth a total of €10.8 billion. That is two thirds of the total value of insurance provided by Atradius DSB during that period.
Almost 98% of all insurances provided by Atradius DSB in support of energy projects, are related to fossil fuels. Of this support, the larger part (80%) goes to the offshore and maritime sector. For instance to shipyards that build pipe-laying vessels and floating drilling rigs, known as Floating Production, Storage and Offloading ships (FPSOs). Or to dredging companies that dig port channels for the transshipment of fossil fuels (see dossier on Suape) or raise coastlines so oil refineries can be built on them. In this way, the export credit insurances provided to Dutch exporters of such projects greatly contribute to the expansion of the infrastructure of the global oil and gas sectors.
Public funds to support the fossil fuel sector
The Ministry of Finance holds primary responsibility for the policy of Atradius DSB and parliament has an important role as supervisor. So far, there has been no political discussion about the extent to which Atradius DSB supports the fossil fuel sector and how this can be aligned with the agreed climate goals. The Dutch government appears to see no problem in using public funds to support the fossil fuel sector.
Sustainable trade and investment policies
If the Netherlands wants a green and inclusive economy, the government should ask itself how export credit insurances for the fossil fuel sector can be stoped and used to support green, sustainable transactions. The Netherlands should focus much more on energy efficiency, energy saving, sustainable mobility, and solar and wind energy. The aim to achieve a climate-neutral economy must therefore be reflected in our trade and investment policies. Both ENDS realises that phasing out export credit insurance that supports the fossil fuel sector will be a gradual process. But we can no longer postpone the discussion on how that process should be conducted.
Sustainable Export Support
The Dutch government indicates that it will end all financial support to coal projects and exploration and development of new oil and gas fields abroad from its foreign trade and development cooperation instruments as of 2020. Unfortunately, this commitment is not applied to the export credit facility, which supports the by far largest volume of fossil fuel related business transactions abroad.
Both ENDS calls on the Dutch government and parliament to ensure that the export credit insurance provided by Atradius DSB is in line with the climate goals of the Paris Agreement. The report 'Paris Proof Export Support' contains a number of recommendations to achieve that. These recommendations are summarised below:
1. Include the export credit facility in its foreign climate targets and set the target for ADSB to provide no new fossil fuel support by 2020.
2. Advocate for the same target at the OECD, and urge for an immediate
stop of all ECA support for coalrelated projects.
3. In 2020, set up a Coalition of the Willing: a dialogue between countries willing to decarbonise their ECAs together in line with the Paris Agreement.
4. Take initiatives to ensure EU policies for ECAs take into account commitments of the EU to contribute to combating climate change.
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Press release / 18 November 2019
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Publication / 17 November 2019
Blog / 19 September 2019
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External link / 29 May 2019
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Press release / 26 March 2019
Wealthy Dutch investors to disinvest personal capital worth 200 million euros from the fossil industry
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External link / 31 May 2018
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News / 11 December 2017
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News / 28 August 2017
Last June, Both ENDS published a report which showed clearly that, through export credit insurance provider Atradius Dutch State Business (ADSB), the Netherlands is supporting the fossil fuel sector on a large scale. Between 2012 and 2015, ADSB provided billions of euros in insurance and guarantees, on behalf of the State of the Netherlands, to fossil-related export projects. This support is completely out of line with the Paris Climate Agreement. On 20 June, members of parliament Lammert van Raan (PvdD) and Sandra Beckerman (SP) submitted questions to the State Secretaries for Finance and for Infrastructure and the Environment.
Publication / 18 June 2017
News / 30 November 2016
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