Danmarks Eksport- og Investeringsfond (EIFO), the Export and Investment Fund of Denmark as the Danish Export Credit Agency was assessed with regard to its alignment with the Paris Agreement across five dimensions using the methodology developed by Perspectives Climate Research. Overall, EIFO was rated ‘Transformational’ (assessment score 2.54/3.00).
EIFO has almost completely phased out the stock of fossil fuel energy finance in its portfolio over the past years (ENS, 2021), in line with Denmark’s commitment to the COP26 Statement on the Clean Energy Transition (CETP) which was implemented via a fossil fuel phase-out policy, coordinated with the Export Finance for Future (E3F) initiative. Since 2018, Denmark’s energy-related export finance has been provided almost exclusively to renewable energy (RE) (E3F, 2023).
EIFO is the biggest financier of RE among E3F members between 2015-2022, providing nearly half of all RE finance within this group (E3F, 2023). Denmark is a longstanding market leader in RE, with the first export finance deal for wind energy concluded in 1998 (e.g., Larsen, 2019).
Due to its minimal exposure to fossil fuels and leading role in RE, EIFO stands out as one of the best-positioned ECAs globally for the green transition. EIFO faces very low risks of accumulating stranded fossil fuel assets. Instead, it has a strong potential to benefit from the increasing global demand for RE.
We also recognise Denmark’s pursuit of a ‘level-playing field’ in the international export finance system, pushing for a global phase-out of all fossil fuels, e.g., by being a founding member of international initiatives like the Beyond Oil and Gas Alliance (BOGA). EIFO supports ECAs in taking on an active role in climate finance as chair of E3F, in the steering committee of the Equator principles, and by being in charge of the secretariat for the EU Export Finance Lab (ExFi Lab) (E3F, 2024; ExFi, 2024).
EIFO can improve its score further by addressing the absence of granular reporting on project-level greenhouse gas (GHG) emissions data, of sectoral emissions reduction targets as well as providing holistic sustainability reporting and a clear definition of climate finance.