In this study, we applied a multidimensional methodology to assess the ‘Paris alignment’ of EIFO, the official ECA of Denmark. The study finds that EIFO is ‘Transformational’ regarding the objectives commonly agreed upon under the Paris Agreement. EIFO is the first ECA to gain this high score applying Perspectives Climate Research’s Paris Alignment methodology. This aggregate assessment outcome is based on the evidence we found across 18 questions in five dimensions, including EIFO’s transparency, fossil fuel exclusion and restriction policies, greenhouse gas (GHG) emissions and targets for its portfolio, 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, Denmark 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 (KEFM, 2021b). This manifests EIFO's long-term withdrawal from the financing of international coal, oil and gas projects, having not financed fossil fuel power projects between 2018 and 2022 (E3F, 2023).
Overall, with a score of 2.54/3.00 – higher than Sweden’s ECAs (EKN: 2.22/3.00 and SEK: 2.30/3.00; Schmidt et al., 2024) and Finnvera (2.20/3.00) (Schmidt, Jia et al., 2024) – EIFO should be considered leading in creating high climate standards and a ‘level-playing field’ in the global export finance system, particularly in the OECD but also within the E3F and the Berne Union’s Climate Working Group. EIFO has scored ‘Transformational’ despite some shortcomings regarding the absence of granular project-level reporting on GHG emissions data and sustainability impact, a lack of a clear definition of climate finance and its earmarks and not yet defined sectorial emission pathways to net zero by 2045. All recommendations for the Danish government and EIFO to improve the scores further are summarised per assessment dimension in Table 5 below.