Press release: Government undermines its own climate policy with export credit insurance
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.
Niels Hazekamp, author of the report: “As part of its foreign trade policy, it’s the Dutch government’s ambition to put an end to financial support for the fossil sector. However, it deliberately excludes support through export credit insurance. The government wants to stop climate change on the one hand, while on the other hand it causes more emissions. In this way, we only help increase climate change and tax money used to save the climate is wasted money.”
Increasing international support for stopping the fossil sector
With 1.5 billion euros of export credit support for oil and gas per year, the Netherlands is a relatively large player in the fossil sector, comparable to China, Germany or Italy. Countries such as Canada, Denmark, France, the United Kingdom and Sweden are currently discussing thedecarbonisation of theirexport credit insurances. In the Netherlands, the discussion has so far been limited to the question of how the export credit agency can support more "green" projects.
Former world leaders against support for the fossil sector
Mary Robinson, former president of Ireland and chairman of "The Elders", a think tank of former world leaders, says about the new Dutch figures:
“The Netherlands needs to urgently align its export support with its stated aim of fighting climate change. When insurances and guarantees for more than €1.5 billion are committed annually supporting fossil fuel projects overseas by the Netherlands’ export credit agency, its broader climate policies ring hollow. It is hard to reconcile a domestic phase-out of coal-fired power plants and a focus on clean energy with the billions supporting the continuation, and even expansion, of fossil fuel use around the world. The Netherlands, and its neighbours across the European Union, have an opportunity to lead the way and phase out the use of fossil fuels worldwide. However, this can only be achieved if export credit agencies urgently shift their insurances and guarantees into clean energy.”
Less export support for the fossil sector would make the development of renewable energy and measures to save energy much more competitive worldwide. By cooperating with other countries that are prepared to decarbonise their export credit insurance, the Netherlands could help to initiate an international policy change in that direction.
The report 'The fossil elephant in the room'
The annex of the report
For more information
Read more about this subject
Paris Proof Export Support
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Press release / 11 November 2020
Export support for dirty energy in Africa
Since the signing of the Paris Climate Agreement, rich countries have provided almost 50 times as much export support for fossil fuel related projects as for clean energy projects in four African countries. This is the conclusion of a report written by five environmental organisations from Ghana, Nigeria, Togo and Uganda, in cooperation with Friends of the Earth Netherlands and Both ENDS. The rich countries insured energy projects with a total value of 11 billion US dollars through their export credit agencies (ECAs). More than half of this export support is related to fossil fuels. Only 1% went to sustainable renewable energy.
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News / 22 November 2021
E3F, 'Export finance for Future' is a great opportunity for the Netherlands
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News / 30 June 2020
Extra export support from the government must stimulate green growth
Almost 40 civil society organisations and networks from around the world, including Both ENDS, today sent a letter to Dutch Minister for Foreign Trade and Development Cooperation Sigrid Kaag and State Secretary for Finance Hans Vijlbrief. They are asking the ministers to ensure that the expansion of export credit insurance as a result of the Corona crisis contributes to a green recovery.
News / 15 April 2021
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Uganda’s Energy Future
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Event / 4 November 2021, 16:45 - 18:00
UNFCCC COP 26 side event ‘Aligning export finance with the Paris Agreement: high time to phase out fossil fuels’
Many countries heavily support fossil fuel investments abroad through their export credit agency (ECA). This contributes to carbon lock- in, whereby companies or even countries commit themselves to a certain amount of greenhouse gas emissions for the lifetime of the infrastructure — oftentimes years or even decades. This seriously delays the transition to renewable energy sources, and is certainly not in line with Art. 2.1c of the Paris Agreement.
Highlighting the impacts caused by export finance in the global South, this side event will provide concrete recommendations to decarbonize export credit agencies.
News / 15 October 2021
German research confirms: Dutch Export Credit Agency is not Paris Proof
The Dutch export credit agency Atradius DSB is not aligned with the Paris Climate Agreement; on behalf of the Dutch State, it continues to strongly support investments in fossil fuels. This is the conclusion of a report by German research agency Perspectives Climate Research (PCR), in which the export credit agencies of the Netherlands and Japan are measured in terms of their climate ambitions and alignment with the Paris Agreement.
Publication / 15 March 2023
External link / 24 August 2022
A breakthrough in finance, a break with fossil fuels (Annual Report 2021)
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News / 8 November 2021
The Netherlands will stop export support for fossil fuel projects, after all
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Almost 60 organisations send a letter about fossil export support to Dutch Parliament
Today, a letter, undersigned by almost 60 organisations from countries that face the consequences of fossil fuel projects or stand in solidarity, has been sent to the Dutch Members of Parliament. This Thursday, a debate about the export credit facility and the policies around it, will take place in the Dutch Parliament. The coalition calls upon Dutch politicians and policy makers to stand up against any form of export support for fossil fuel projects that are to be executed by Dutch companies abroad, expecially in the global South.
News / 28 August 2017
Politicians ask for sustainable export support
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