April 1, 2022
This report from UK think tank Bright Blue looks at how UKEF can fully align with the Paris Agreement so it becomes a model.
Export Credit Agencies (ECAs) are government-backed finance institutions that provide financial support such as loans, insurance and guarantees to exporters of goods and services. However, contrary to their commitments under the Paris Agreement on climate change, many countries still provide significant amounts of financial support to fossil fuel projects from exporters through their ECAs. Last year, the UK became the first country to actually implement – not just commit to – a phase out of most financing and insurance from UK Export Finance (UKEF) for the development of fossil fuel export projects overseas. Despite this, the extent to which UKEF is fully aligned with the Paris Agreement generally remains unclear and doubtful. This report seeks to investigate this further, offering recommendations to fully align UKEF with the Paris Agreement so it becomes a model that can help other countries spur necessary reforms in their ECA.Read Full Report