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.