4. Conclusions

This guide highlighted the critical role ECAs can play in aligning export finance with the goals of the Paris Agreement. The extensive analysis of best practices shows that ECAs have a large potential to foster the transition from fossil fuel investments to clean energy solutions. To achieve this potential, all ECAs in the OECD and beyond should implement similar best practices across all five Paris alignment dimensions:

Transparency: The best practice in terms of transparency is the energy finance reporting by Export Finance for Future (E3F) including energy finance data disaggregated by energy source and different stages of the value chain. On an individual country level, leading ECAs, such as Denmark’s EIFO and Finland’s Finnvera, have set a new standard in transparency by reporting on Scope 1, 2, and 3 emissions, fostering greater accountability in financing decisions. These examples underscore the importance of aligning with international standards like the GHG Protocol and ensuring comprehensive disclosures.
Fossil Fuel Exclusion: Many ECAs, initially led by UKEF and then followed by most members of E3F, have pioneered the exclusion of fossil fuel projects, with stringent policies to phase out coal, oil, and gas financing. This shift serves as a critical step in preventing the lock-in of carbon-intensive infrastructure, showcasing that public financial institutions must align their portfolios with national and international climate objectives.
Mitigation: ECAs such as EIFO have demonstrated a consistent decline in the greenhouse gas (GHG) intensity and total GHG emissions of their portfolios, driven by strong domestic renewable energy sectors. Setting sector-specific carbon intensity targets – such as done, for example, by Finnvera – should be complemented by absolute GHG reduction targets, in alignment with 1.5 °C pathways. For example, in the shipping sector they may start by signing the Poseidon Principles, an initiative aimed at decarbonising the sector well before 2050.
Climate Finance: ECAs are increasingly adopting climate finance earmarks, leveraging frameworks like the EU Taxonomy, although they must ensure not to label as climate finance any projects that may prolong the lifetime of fossil fuel assets. By providing financial incentives for clean energy and green projects, they are supporting the sustainable transformation of industries and promoting innovation, particularly in renewable energy.
Engagement: The proactive engagement of ECAs, such as Sweden’s EKN and SEK, in international fora and national dialogues illustrates the importance of collaborative efforts in promoting ambitious climate policies. By actively participating in initiatives like Export Finance for Future (E3F) and the Net-Zero Export Credit Agencies Alliance (NZECA), ECAs can contribute significantly to global climate finance goals.

To successfully align with the Paris Agreement, ECAs must continue to refine their strategies, enhance transparency, and implement more ambitious climate and exclusion policies. With effective engagement and collaborative efforts at both national and international levels, ECAs can accelerate the transition towards a just, low-carbon global economy. Table 8 below summarises such best practices for aligning ECAs with the Paris Agreement along with country examples.

Table 8: Summary of best practices per Paris alignment dimension.

Best practices for Paris Alignment	ECA examples
Transparency
Alignment with international GHG reporting standards for Scope 1, 2, and 3 emissions (e.g., GHG Protocol or the Partnership for Carbon Accounting Financials [PCAF]).	Finland’s Finnvera calculates and reports its produced (scope 1, 2) as well as financed emissions (scope 3) both domestically and internationally as well as by sector. Denmark’s EIFO (formerly EKF) reports its scope 1, 2, and 3 (financed) emissions for the years 2020 onward. US-EXIM has reported its actual (or projected) CO₂ emissions for pending and approved projects since 1999, but only for those above a high threshold.
Clear in-house definition of fossil fuel finance and clean energy finance based on international best practices such as by the Export Finance for Future initiative (E3F), multilateral development banks (MDBs), the OECD, and EU Taxonomy (excluding any investments that may prolong the lifetime of fossil fuel assets).	In 2020, the Dutch ECA Atradius DSB developed an in-house methodology to measure the share of fossil fuel-related activities over the total portfolio. E3F’s annual status reporting set a new standard for transparent reporting on the number of transactions, credit value, and fossil/clean energy finance shares in value chains. The EU Taxonomy is increasingly used by ECAs and defines criteria for economic activities aligned with a net-zero trajectory by 2050, but falsely considers gas-related projects to be in line with a 1.5 °C-trajectory.
Annual disclosure fully in line with the newly developed IFRS S1 and S2 reporting standards that integrate all the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).	Canada’s EDC was the first ECA to join the TCFD in 2018 and has been reporting on progress within the four dimensions of governance, strategy, risk management and metrics, and targets ever since.
Fossil fuel exclusion
Existing policies exclude support for new coal projects and related value chains (with very limited, clearly defined exceptions that do not prolong the lifetime of fossil fuel assets).	OECD-ECAs have stopped all support to unabated coal-fired power plants in 2021, but loopholes remain for other coal uses, such as, for example, metallurgical coal. Chinese ECAs (CDB, CEXIM, and SINOSURE) have stopped all support to newly built coal-fired power projects since 2021.
Existing policies exclude support for new oil projects and related value chains (with very limited, clearly defined exceptions that do not prolong the lifetime of fossil fuel assets).	Since March 2021, as an ECA first mover, UKEF implements the UK government’s policy ending new support for the fossil fuel energy sector overseas (coal, oil, and gas). In spring 2024, UKEF concluded its first deal for O&G decommissioning.
Existing policies exclude support for new gas projects and related value chains (with very limited, clearly defined exceptions that do not prolong the lifetime of fossil fuel assets).
Mitigation
Consistent decline in GHG emission intensity and total emissions of the portfolio.	Many of the ECAs assessed have been reporting financed (scope 3) emissions only in recent years, often for the first time, with some time delay or even showing a GHG increase. This leaves Denmark’s EIFO as the only ECA that has already demonstrated a consistent declining trend in GHG emissions intensity.
Consistent decline in the share of fossil fuel financing and consistent increase in the share of clean energy over the total energy portfolio.	Of the E3F countries, Belgium, Denmark, Finland, Spain, Sweden and the UK have increased the share of RE support to 100% since they stopped all fossil fuel support in 2021. Denmark’s EIFO shows that some ECAs started intentionally phasing out fossil fuel support even before, not having approved a single fossil fuel transaction since 2018. This was made easier by the structure of the Danish economy and EIFO’s track record of supporting the wind industry – making up 75% of its entire portfolio.
Adoption of GHG emissions reduction targets for all emissions-relevant sectors (with increasing alignment with 1.5 °C pathways over time).	UKEF has set interim sectoral decarbonisation targets for approximately 85% of its financed emissions, i.e. exposures in the O&G, power, and aviation sectors, on the path to net zero by 2050. These targets will be kept under review and a UKEF Transition Plan will be developed.
Climate Finance
Adoption of common climate finance earmarks such as the EU Taxonomy for Sustainable Activities and annual reporting on these earmarks.	Sweden’s EKN and SEK classify Paris-aligned transactions based on the EU Taxonomy which is far more granular and adaptable than the Rio markers or the MDB Joint Approach. Moreover, EKN’s and SEK’s in-house methodology prevents possible ‘carbon lock-ins’ from fossil gas that the EU Taxonomy classifies as ‘green’.
Implementation of effective financial incentives for clean energy technologies and sustainable business practices.	The Dutch Atradius DSB and Germany’s Euler Hermes introduced several instruments to make Paris-aligned exports more attractive in 2020. In 2023, OECD negotiations went further and now allow its ECAs: an extended maximum repayment period for climate and environmental loans, reduced minimum guarantee payments in the lower-risk categories, and more flexible repayment terms.
Consistent contributions to sustainable development goals (SDGs) and implemented safeguards against negative social and environmental impacts.	Most OECD-ECAs already have various international guidelines and sustainability policies in place. Their level of stringency varies, however, and historic shortcomings in safeguarding human rights and environmental due diligence show space for improvement. Denmark’s EIFO is mandated to generate social returns which are not simply limited to financial returns or climate aspects but encompasses its wider sustainability performance.
Engagement
Demonstrated engagement in relevant international fora such as export finance-relevant clubs, initiatives, and working groups promoting ambitious climate policies in the export finance system.	Many ECAs are already members of the Berne Union Climate Working Group, E3F, NZECA, and other groups.
Demonstrated engagement in relevant national fora promoting ambitious climate policies in the national export finance system.	Finland, France and Sweden have set up one-stop shops and networks of public organisations, agencies and companies that promote exports and investments. The Fossil Free Sweden initiative aims to make the country the first fossil-free welfare nation in the world. This requires government-wide engagement with companies, industries, municipalities and regions and already led to a dedicated finance strategy for fossil-free competitiveness.
Demonstrated engagement with domestic exporters on climate-related matters.	UKEF has been providing tailored export finance advice to ‘green’ SMEs with dedicated export finance managers across the UK. UKEF has conducted national-level surveying to better understand the attitudes of stakeholders towards ceasing its support of fossil fuel value chains and its implications. UKEF also developed guidelines for companies transitioning out of fossil fuel exports.