At COP29 today, the UN-convened Net-Zero Export Credit Agencies Alliance (NZECA) published its Target-Setting Protocol, its first tool to enable export credit agencies and export-import banks to accelerate their decarbonisation ambitions.

New protocol to accelerate net-zero transition goals

The protocol provides guidance to members on setting long-term and intermediate science-based climate targets and related disclosures, helping members to fulfil the commitments they have made. It builds on the experience of other financial institutions on the path to net zero and provides guidance on setting targets that are ambitious within their operational context. This is critical in ensuring that export credit agencies and export-import banks can meaningfully participate in the net zero transition without compromising their core mandate of enabling exports and promoting economic growth.

“Export credit agencies and export-import banks are essential to climate action, because they have significant influence in global markets and the resources to support large-scale projects worldwide. By financing, insuring, and guaranteeing substantial amounts of international trade and investment, they can direct funds towards sustainable infrastructure, energy, and industrial projects – critical sectors that heavily impact the world’s carbon footprint and that the private sector alone may not be able to help finance,” said Eric Usher, Head of UNEP Finance Initiative.

The role of export credit agencies in climate action

The Net-Zero Export Credit Agencies Alliance (NZECA) was launched at the previous UN Climate Summit COP28 by five founding members and three associate members, in partnership with Oxford University, the Future of Climate Cooperation, and the UN Environment Programme Finance Initiative (UNEP FI).

NZECA members commit to transitioning their portfolio greenhouse gas emissions to net zero by 2050, or sooner, consistent with the long-term goal of the Paris Agreement – a maximum temperature rise of 1.5°C above pre-industrial levels by 2100. Members set and disclose intermediate science-based targets for 2030 or sooner.

“Participation in the NZECA allows us to collaborate globally, and ensure our efforts are aligned with international best practices. The Target-Setting Protocol will encourage us even further in our climate transition work. We are dedicated to setting scientifically based climate goals for our financial portfolios in line with Sweden’s and SEK’s own 2045 net-zero targets,” said Magnus Montan, CEO of Swedish Export Credit (SEK).

The publication of the Protocol is the first important step in converting members’ commitments into real life outcomes. The alliance has also welcomed a new member, Finland’s Finnvera, bringing the total number of affiliate and committed members to nine export credit agencies worldwide.

Further reading and related documents: NZECA Target Setting Protocol – United Nations Environment – Finance Initiative