UK Export Finance Leads New Alliance to Promote Net Zero Export Credit

UK Export Finance (UKEF) has joined forces with other export credit agencies (ECAs) to form a Net Zero Export Credit Agencies Alliance. The alliance aims to promote the role of export credit in supporting global net zero. Additionally, UKEF has secured multimillion-pound financing for climate-friendly projects in Africa and the Middle East.

Launch of Net Zero Export Credit Agencies Alliance:

  • UKEF and other Export Credit Agencies (ECAs) initiated the ‘Net Zero Export Credit Agencies Alliance.’
  • Aimed at promoting the role of export credit in supporting global net zero initiatives.

Multimillion-Pound Support for Climate Adaptation:

  • UKEF announces substantial financial support for transactions promoting climate adaptation and sustainability across Africa and the Middle East.
  • Funding focuses on initiatives aligned with climate goals.

COP28 Announcement:

  • The alliance launch occurred at COP28, a significant global summit addressing climate change.
  • The partnership receives support from the UN’s Environment Programme Finance Initiative.

Global Collaboration for Net Zero Emissions:

  • The alliance encourages export credit agencies and EXIM banks worldwide to achieve net zero emissions by 2050.
  • Collaboration with the Glasgow Financial Alliance for Net Zero enhances the impact of collective efforts.

Full and Affiliate Members:

  • Full members include UKEF, the Export and Investment Fund of Denmark (EIFO), Export Development Canada (EDC), and Swedish National Export Credits Guarantee Board, and the Swedish Export Credit Corporation (EKN and SEK).
  • Affiliates from the UAE, Kazakhstan, and Spain have also joined the alliance.

Commitment to Net Zero Goals:

  • UKEF is committed to reaching net zero in total financed emissions by 2050.
  • Other alliance members follow suit, pledging to achieve net zero in their portfolios and operations by mid-century.

Global Cooperation for Climate-Friendly Projects:

  • Tim Reid, CEO of UKEF, emphasizes the crucial role of export credit agencies in supporting businesses’ transition towards net zero.
  • The alliance mobilizes export finance to encourage global net zero by 2050, aligning with climate-friendly projects.

OECD Arrangement Update:

  • The announcement follows a change in the OECD Arrangement, allowing export credit agencies to provide greater incentives for climate-friendly transactions.

UNEP FI Endorsement:

  • Eric Usher, Head of UNEP FI, underscores the significance of ECAs in delivering sustainable global trade.
  • The alliance is positioned to support real economic transition and help countries fulfill Paris Agreement commitments.

UKEF’s Financing Initiatives:

  • UKEF, during COP28, secures multimillion-pound financing for transactions supporting climate adaptation and sustainability in Africa and the Middle East.
  • Highlights include £226 million in financing for Iraqi infrastructure development, bringing clean water to additional households.

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