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5. Conclusions and recommen­dations

In this study we applied a multidimensional methodology to assess the ‘Paris alignment’ of EKN and SEK, the official ECAs of Sweden. The study finds that both are ‘Paris aligned’. This aggregate assessment outcome is based on evidence we found across 18 questions in five dimensions, including EKN and SEK’s transparency, fossil fuel exclusion and restriction policies, greenhouse gas (GHG) emissions and targets for their whole portfolios, their contribution to climate finance as well as climate-related engagement. Each assessment dimension is underpinned by precise benchmarks of ‘Paris alignment’ that are informed by best practices in the global export finance system, peer-reviewed literature as well as experts that contributed to the methodology development (Shishlov et al., 2021).
Crucially, in 2021 Sweden became a signatory to the COP26 Statement on the Clean Energy Transition (CETP, n.d.) that aimed to phase out all international support to fossil fuels by 2022 and which was implemented via an ambitious, best-in-class fossil fuel phase out policy (E3F, 2023a). This has already contributed to a significant shift from 2019 onwards whereby much more support was provided by Sweden’s ECAs to renewable energy (RE) than to fossil fuels, making Sweden one of the biggest supporters of RE and related infrastructure within Export Finance for Future (E3F, 2023b).
Overall, as the first two ECAs that received such high scores (2.22/3.00 and 2.30/3.00 respectively), EKN and SEK should be considered leaders both within the E3F, the EU and OECD to create a ‘level-playing field’ in the global export finance system, including by co-founding the Net-Zero Export Credit Agencies Alliance (NZECA), joining at its inception and leading the Berne Union’s Climate Working Group since 2023 (EKN). Both ECAs have not scored ‘Transformational’ (although they were close to it) due to the absence of granular reporting on project-level GHG emissions data, of financed (scope 3) emissions (EKN), a clear definition of climate finance and sectoral reduction targets. All recommendations for the Swedish government, EKN and SEK to improve the scores further are summarised per assessment dimension in Table 2 below.
Table 2: Summary of key recommendations per assessment dimension
Key recommendations for aligning EKN and SEK with the Paris Agreement
Financial and non-financial disclosure and transparency
(Dimension 1)
  • Transparently report all scope 1-3 emissions in line with international standards and set sectoral reduction targets in line with the best-available climate science.
  • Publish estimated future emissions data for their portfolios and new commitments on their websites.
  • Refine and extend the E3F transparency reporting and reflect its reporting modalities in all their reporting.
  • EKN should follow SEK’s lead to go beyond E3F reporting modalities and comprehensively report on all sectors exposed to fossil-related transition risks.
  • Report climate finance both for new authorisations and total exposure as a broader category that includes finance for RE and related infrastructure but also cross-cutting activities for both mitigation and adaptation.
  • From their Annual Reports for 2024, start adhering to the newly developed IFRS S1 and S2 reporting standards that integrate all the TCFD recommendations, and consider adhering to the TNFD.
  • Consider adhering to the TNFD in addition to the newly developed IFRS S1 and S2 reporting standards that integrate all the TCFD recommendations.
  • SEK should follow EKN’s lead and report the number and share of green transactions according to the EU Taxonomy annually.
Ambition of fossil fuel exclusion or restriction policies
(Dimension 2)
  • No recommendations.
Climate impact of and emission reduction targets for all activities
(Dimension 3)
  • EKN should follow SEK’s lead and significantly improve the transparency of its GHG reporting, including explicitly stating the financed GHG emissions associated with the number and total value of drawn guarantees for all financial years.
  • Develop and make sectoral targets publicly available as soon as possible in parallel to NZECA discussions, incorporating the targets into the Annual Reports and sustainability (finance) policies.
Positive contribution to the global climate transition
(Dimension 4)
  • Strengthen monitoring and reporting modalities, while allocating far more resources to climate-related activities to green export finance further and faster.
  • Contribute to streamlining efforts towards a common definition of climate finance in the global export finance system.
  • Publish data on the demand for the Green Export Credit Guarantee, the average and total amount of guarantees/loans per year as well as on their effectiveness (EKN).
  • Request the Swedish Government to amend the mandates to ensure full Paris alignment.
  • Consider environmental measures also for defence-related projects.
  • Transparently align all operations closer to the UN SDGs for 2030 and the Paris Agreement’s 1.5 °C temperature limit.
Outreach and ‘pro-activeness’ of the ECA and its governments
(Dimension 5)
  • Take ambitious diplomatic action on a global scale to establish stricter rules governing public support for fossil fuels.
  • Collaborate more with relevant national actors to align on approaches and climate targets and promote the inclusion and mainstreaming of export aspects across Sweden’s key climate policy documents.
  • Work more closely with Swedish exporters and engage proactively with those that have the potential for low-carbon and climate-friendly export activities.