European Parliament demands export credit agencies (ECAs) to open up
The European Parliament in its plenary session on the 5th of April, adopted a proposal to regulate Export Credit Agencies (ECAs) that will force them to become more transparent on where their funds come from, and go to, as well as how they count social and environmental risks. Furthermore, the Parliament requires ECAs to comply with EU human rights objectives in their activities, and to phase out the subsidising of fossil fuel projects in line with commitments adopted by the G20 in 2009.
It is now up to the Council to take a position on the Parliament's report. This would ensure that ECAs respect EU principles on democracy, human rights and sustainable development. It would also ensure that they report on their use of off-balance sheet vehicles and other financial instruments, which are currently hiding profits and losses on public accounts from public scrutiny. Adopting the Parliament's proposal by the Council would be a first step to holding ECAs accountable for their practices.
Export Credit Agencies (ECAs) are private or quasi-governmental bodies of EU member states that provide government-backed guarantees to companies covering the risk of doing business in developing countries and emerging markets. ECAs backed more than $260 billion of business in 2008. Without ECA support, many business deals would not go forward. ECA operations are shrouded in secrecy, and their financing often leads to execution of projects with serious negative environmental or human rights abuses, and increased corruption. Taken collectively, ECAs fund twice as many extractive industry related projects as all the multilateral development banks, including the entire World Bank Group.
Examples of ECA backed projects:
• A deep-water oil well, under water pipeline and a pumping station off the coast of Brazil, for which no assessment had been made of the risks of a blow out
• The controversial Baku-Tbilisi-Ceyhan oil pipeline which the UK government ruled that the BP-led consortium is breaking international rules governing the human rights responsibilities of multinational companies.
Wiert Wiertsema from Both ENDS said: "ECAs charge higher interest rates than the World Bank or the IMF. While ECA support is not screened for development impacts, the cancellation of export credit debt is charged to ODA accounts. Transparent accounting of ECAs should put an end to turning private risks into public debts."
The adopted report represents the Parliament's position for negotiations with the Council on new legislation to regulate ECAs. The Council is expected to discuss the report during their next Export Credit Working Group meeting on Wednesday 6th April.
ECA Watch calls upon the Council to adopt the Parliament's report in full.
For details on the adopted amendments, see item P7_TA-PROV(2011)0126 in the adopted texts.
For more information, please contact Wiert Wiertsema at Both ENDS, or call 003120-5306611.
Photo Eric Caballero
Read more about this subject
Event / 4 December 2019, 15:00 - 16:30
On Wednesday December 4th 2019 Both ENDS together with Heinrich Böll Stiftung from he US organises a side event at the UNFCCC COP in Madrid: Can the GCF Catalyze Inclusive, Gender-Responsive Local Climate Action Globally and in Latin America?
News / 26 November 2019
No fewer than 55 NGO's, foundations and associations, many of whom do not normally deal primarily with climate change, express their concern about the dangers of climate change for everyone and everything in the statement 'The climate belongs to everyone'.
They call for urgent action and support the international Climate Strike taking place this Friday, November 29. In cities all over the world, young and old will take to the streets again. In the Netherlands too, climate strikes will be organised in many cities.
Press release / 18 November 2019
The Netherlands provides export credit insurances and guarantees worth 1.5 billion euros annually to Dutch companies active in the oil and gas sector abroad. This support amounts to one and a half times the annual amount that the Cabinet of Prime Minister Rutte mobilises for climate initiatives worldwide. The intended effects of Dutch international climate policy are more than offset by this fossil export support. That is the conclusion of a new report from Both ENDS which is published today.
Publication / 17 November 2019
Video / 8 November 2019
The Athi River Community Network is made up of communities who live along the Athi River watershed. Members of the Athi River Community Network promised to join forces with the Friends of Ondiri Wetland to ensure that this critical wetland is restored and conserved for the sake of current and future generations.
News / 8 November 2019
On Thursday November 7th, a group of European NGO's including Both ENDS, sent a letter to Vice-President of the EU Frans Timmermans, in which they ask him to support the phase out of European Investment Bank’s fossil fuel financing by the end of 2020.
News / 5 November 2019
After a complaint filed by women's groups from Ixquisis, Guatemala, the Interamerican Development Bank (IDB) has started an investigation on several policy violations, amongst which the Gender Equality policy. This is a unique chance to create a precedent, because complaints on the IDB's gender policy are very rare. The women from Ixquisis are fighting for their rights with support of the Global Alliance for Green and Gender Action (GAGGA).
News / 31 October 2019
Earlier this month, we learned that Golfrid Siregar, an Indonesian environmental lawyer working for our partner organisation WALHI died under suspicious circumstances. We call for a thorough and transparent investigation and have brought the case to the attention of the Indonesian embassy in The Hague and to the Netherlands' embassy in Jakarta.
Press release / 24 October 2019
Press release 24 October 2019
Starting today, investors can use five criteria to test whether companies in the fossil sector are actively working on phasing out their fossil activities. Too many investors still seem hesitant to switch to a profitable future of sustainable energy and these criteria should help them do this. The organisations DivestInvest Network, Sustainable Energy (Denmark) and Both ENDS (the Netherlands) publish the report "Managed Decline of Fossil Fuel Businesses" today, which describes these five criteria. The criteria aim to help investors choose investments that are in line with the Paris goal "stay below 1.5 degrees Celsius warming." The recommendations are presented at the World Pension Summit deliberately, because pension fund investors in particular can take more responsibility in this.
Publication / 24 October 2019
News / 11 October 2019
In Indonesia, US-based mining companies succeeded to roll back new laws that were meant to boost the country’s economic development and protect its forests. This is the level of impact that investment treaties can have on social, environmental and economic development and rights. Why? Because of the ‘Investor-to-State Dispute Settlement’ (ISDS) clauses that are included in many such treaties.
News / 11 October 2019
Indigenous communities in Paraguay saw their attempts to regain their ancestral lands thwarted by German investors. This is the level of impact that investment treaties can have on social, environmental and economic development and rights. Why? Because of the ‘Investor-to-State Dispute Settlement’ (ISDS) clauses that are included in many such treaties.
Indigenous communities in Paraguay saw their attempts to regain their ancestral lands thwarted by German investors. In Indonesia, US-based mining companies succeeded to roll back new laws that were meant to boost the country’s economic development and protect its forests. This is the level of impact that investment treaties can have on social, environmental and economic development and rights. Why? Because of the ‘Investor-to-State Dispute Settlement’ clauses that are included in many such treaties.
Publication / 4 October 2019
Event / 27 September 2019, 13:00
On Friday 27 September, Both ENDS joins the Dutch Climate Strike and the march in The Hague.
This way we let our government know that there is no more time to waste and that it must take significant action in all policy areas to stop climate change.
More information on the Dutch Climate Strike can be found on https://klimaatstaking.nl/english/
News / 25 September 2019
52 charity organisations, community groups, foundations and NGOs, many of whom are not primarily concerned with climate change, have come together to express their concern about the dangers of climate change for everyone and everything in a joint declaration. They call for urgent action and support the Climate Strike this Friday 27 September in The Hague.
Press release / 23 September 2019
Amsterdam, 23 September 2019 - The world's 5th largest pension fund, with assets of over €430 billion, Dutch ABP is continuing to invest in companies that are on a collision course with the Paris climate goals, such as coal and oil companies.
Publication / 23 September 2019
News / 20 September 2019
We are shocked and alarmed by the news of a planned raid into the headquarters of an environmental organisation in the Philippines. Although the raid has not materialised until now, we are deeply concerned for their wellbeing.
Event / 20 September 2019, 19:30
Last June, after months of negotiations in five different 'climate roundtables', the Dutch government presented its Climate Agreement . Negotiations had taken place in a roundtable for 'industry', for 'built environment', for 'electricity', 'mobility' and for 'agriculture and land use'. Climate measures that the Netherlands can take within its borders are pretty much covered by these climate roundtables. But the Netherlands also has a huge climate footprint outside its borders. It seems we have forgotten about the 'International' Climate Roundtable.