News / 6 maart 2024

Export Credit Agencies and development finance in the EU

We are seeing increased interest in the EU for blending different development financial instruments with export credits, even though export credits are not fit for this purpose. The European Commission is developing plans for using so-called export credits for financing everything from raw materials, to development projects, to weapons. A new report of Counter Balance is shedding light on the significant environmental and social impacts of projects financed by ECAs.

Export credits are being named as a possible way of financing projects through the EU's Global Gateway program. This is concerning to us, as past experience has shown that export credit agencies (ECAs) are lacking in transparency and social and environmental due diligence criteria.

We recommend stopping this blending of ECAs and DFIs, to revisit export credit rules to reflect EU policy objectives, and establish robust transparency and accountability mechanisms.

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