News / 8 November 2018

Our recommendations for the legislative review of Canada's Export Credit Agency

Every 10 years, the mandate and activities of 'Export Development Canada' (EDC), the Canadian export credit agency, are reviewed. Since the last review took place in 2008, another review is currently underway.  Both ENDS and a couple of other CSOs working from a number of countries made a joint submission as formal input to the legislative review. We did this especially in light of the Canadian governments' ambition to show leadership on climate change and to prioritise climate change action and clean economic growth.

Export Credit Agencies (ECAs) are key institutions governments employ to support private companies doing business overseas. ECAs offer a wide range of guarantees and insurances to private companies. This makes it easier for these companies to gain access to finance, mostly from banks, especially in the case of very large, risky projects.

In line with rules and legislation

The purpose of the 10-year review, which must be initiated by Canadian Minister of International Trade in consultation with the Minister of Finance, is to assess the provisions and operations of the 'Export Development Act', which defines EDC's mandate. The review also needs to assess whether the legislative, regulatory and policy framework of EDC remains relevant. 

Before offering guarantees and insurances to any company, ECAs should assess whether a proposed activity is in line with international agreements and rules, such as the OECD guidlines and the Paris agreement. 

Our recommendations 

Building on his, we recommend that the Canadian Government amends EDC’s governing legislation to ensure that EDC:

1. discloses information on all transactions that relate to the exploration, production and transportation of coal, oil and gas;

2. decreases the level of support to operations related to the exploration, production and transportation of coal, oil and gas in the near future, resulting in a complete phase out of such support no later than 2020.

In addition we recommend EDC to shape leadership on climate change policies by forming alliances with other export credit agencies to end all fossil fuel support from these government backed institutions as soon as possible.

Further reading: 

The full text of the submission

For more information

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