Briefing Paper: The role of European ECAs in financing the energy transition
As the European Union (EU) shifts from fossil fuels to so-called transition minerals, Export Credit Agencies (ECAs) are expected to be key finance and trade tool under recent EU policy.
As the European Union (EU) shifts from fossil fuels to so-called transition minerals, Export Credit Agencies (ECAs) are expected to be key finance and trade tool under recent EU policy.
But ECAs have a troubling track record, financing projects linked to human rights abuses, environmental destruction and poor community engagement.
Can EU ECAs be trusted to drive a just energy transition or will they repeat the mistakes of the past?
In our latest briefing paper, Both ENDS with support of Counter Balance, examines the critical issues in ECAs governance that need urgent reform. The message is clear: ‘make sure the guardrails are in place before you open the highway’.
Key issues:
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Lack of enforceable human rights & environmental due diligence
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Poor transparency and limited public oversight
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Blurred mandates between development finance & commercial export support
Our recommendations:
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Put community rights, informed participation & shared benefits at the centre of project financing
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Strengthen due diligence standards & procedures to uphold human rights & environmental safeguards
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Require responsible exit strategies and restoration plans from project developers
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Guarantee transparency, information disclosure and complaints mechanism from the project early phases
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Publicly clarify and separate the mandates of ECAs and development finance institutions
For more information
Themes
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Publication / 13 november 2023
