Towards Net Zero for Export Credits: Building a Public Climate Finance Alliance

Summary

• Export Credit Agencies (ECAs) have significant financial capacity, with combined annual commitments of more than $1.3 trillion, but contribute only a small share of global climate f inance flows, highlighting untapped potential.

• Many ECAs have aligned with global sustainability goals in recent years, often focusing on renewable energy financing with ECA-backed volumes of approx. $24 billion globally in 2023.

• A recent alliance launched at COP28 is the UN-convened Net-Zero Export Credit Agencies Alliance (NZECA) which unites ECAs to commit to science-based targets and achieve net zero emissions by 2050.

• The NZECA Target Setting Protocol launched at COP29 provides a framework for ECAs to set and disclose emission reduction targets, focusing on transparency, accountability and alignment with net zero pathways.

• NZECA faces challenges including limited membership, voluntary compliance and balancing climate commitments with domestic economic objectives. Further framework development and broader global engagement is needed.

• Focusing on the green transition, ECAs can play a transformative role in helping to boost climate finance to developing countries to $1.3 trillion per year if they use their tools to derisk trade and investment, and catalyse private capital.