Geneva, 4 December 2023 – At COP28 today, eight leading export credit agencies in partnership with the Innovation and Knowledge Hub at the University of Oxford, Future of Climate Cooperation, and UN Environment Programme Finance Initiative (UNEP FI) launched the UN-convened Net-Zero Export Credit Agencies Alliance (NZECA), the first net-zero alliance comprising public finance institutions globally. In working to deliver net-zero economies by 2050, the NZECA will help decarbonise global trade and facilitate joint action from public and private finance.

The five founding members together with the three affiliate members come from geographically diverse regions including Europe, the Middle East, and North America, and are among the largest ECAs operating globally. Combined, these ECAs supported an estimated US$120 billion in global trade in 2022 alone providing finance and other services such as insurance and guarantees to facilitate local companies’ international exports. The export credit industry is hugely influential globally with up to $28 trillion – comprising 80 to 90% – of international trade relying on export financing, much of it provided by governments via export credit agencies and export-import banks.

“Public finance has been the missing piece in the net-zero financial landscape. ECA’s are in a very strong position to deliver more sustainable global trade and to complement the work already being undertaken by the private finance sector, helping to address market gaps to deliver net-zero economies by 2050. NZECA will play an important role in supporting real economy transition and help countries implement their commitments under the Paris Agreement.”

Eric Usher, Head of UNEP FI 

Founding members include Svensk Exportkredit (SEK) and EKN from Sweden, the Export and Investment Fund of Denmark (EIFO), UK Export Finance, and Export Development Canada (EDC). They have today committed to transition all operational and attributable GHG emissions from their business activities to align with pathways to net zero by mid-century, or sooner, including CO2 emissions reaching net zero at the latest by 2050, consistent with a maximum temperature rise of 1.5°C above pre-industrial levels by 2100. Alliance members will set and publicly disclose intermediate science-based targets for 2030 or sooner for the highest emitting sectors in their portfolios.

Alliance members also commit to end new direct support for the international unabated fossil fuel energy sector by the end of 2024, supporting and operationalizing the Statement on International Public Support for Clean Energy Transition made by 39 countries and development agencies in Glasgow in 2021.

KazakhExport, Etihad Credit Export Insurance (ECI), which is the UAE’s export agency, and Cesce from Spain have joined as affiliate members committing to supporting the goal of net-zero greenhouse gas emissions and incorporating the need for a just transition. They will benefit from peer knowledge sharing with leading ECAs, to help them accelerate their pathway to net zero. Their inclusion brings a diversity of perspectives on global economy decarbonisation and the just transition.

The Alliance will be managed by a UNEP FI-based secretariat. Its commitments, governance and accountability mechanisms will mirror those of the existing UNEP FI-convened alliances of private financial institutions (Net-Zero Asset Owner, Banking and Insurance Alliances) and will complement the efforts of other existing climate change action networks for ECAs as well as national commitments, such as E3F, CETP, OECD, the Berne Union etc. This will help streamline and bolster ongoing efforts within the financial sector community and across public and private financial institutions.

NZECA will have a dedicated work track for climate solutions and transition finance with some members of the Alliance having already committed upwards of US$2 to US$6.5 billion each towards green technologies.

NZECA will be supported by its partners the Innovation and Knowledge Hub at the University of Oxford and Future of Climate Cooperation. The Glasgow Financial Alliance for Net Zero (GFANZ) is supporting the launch and looks forward to collaborating with the Alliance and its members in the coming years.

Race To Zero’s expert peer review group has confirmed that the commitments signed by the members of the NZECA meet Race To Zero’s criteria to become its partner and set a credible pathway to net zero by 2050.

“Adherence to this initiative is a significant milestone for our company and a step forward among the various actions we undertake in the framework of the Cesce Climate Change Strategy. Its fulfilment is an unequivocal demonstration of the performance carried out in recent years and reaffirms Cesce’s commitment to carbon neutrality.”

Carmen Vara, State Account Business Division Director, Cesce

“As Canada’s export credit agency, we play an important role in supporting the Canadian economy and the global energy transition through our commitment to reach net-zero emissions by 2050, and we are pleased to be a founding member of this UN-convened alliance. Our collective efforts as an ECA community will have a greater impact by sharing our knowledge, learnings and holding one another accountable on the path to net zero.”

Lorraine Audsley, Senior Vice-President and Chief Risk and Sustainability Officer, EDC

“Climate change is imminent and the transition away from fossil fuels is more important than ever to keep the 1.5 or even 2-degree goals alive. All levers need to be pulled, and all sectors need to transition. This is why a global net-zero alliance for public financing institutions such as ECAs and EXIMs is important. Policymakers and CEOs can set the direction – however we need scientific and well documented advice on how to implement, and this is what the NZECA alliance convened by UNEP FI can deliver.”

Peder Lundquist, CEO, Export and Investment Fund of Denmark (EIFO)

“Export credit agencies play a crucial role in helping businesses to transition towards net zero and shifting finance flows towards climate-friendly projects and investments. This new alliance mobilises export finance in support of a common goal: achieving global net zero by 2050 and limiting global warming to 1.5 degrees. I look forward to working with UKEF’s counterparts around the world to support this journey.”

Tim Reid, CEO, UK Export Finance

Further Resources

Visit the website for more information. The link will go live at 12:00h GST, 09:00h CET.

Join us at the following events at COP:

4 December 2023 | 13:30 – 14:00 | Launch of Net-Zero Export Credit Agency Alliance

Location: ADGM stage in the Green Zone (Energy Hub).

Join a high-level launch with key-note speakers from leading export credit agencies, Inger Andersen UNEP Executive Director and Mark Carney, UN Special Envoy for Climate Action and Co-Chair for the Glasgow Finance Alliance for Net Zero. Event is free to attend but registration is required for the Green Zone.

4 December 2023 | 17:45 – 18:45 | Climate leadership in export finance

Location: UK Pavilion in the Blue Zone

A panel event with CEOs from the Net Zero Export Credit Agencies Alliance discussing the role of export credit agencies in aligning financial flows to the Paris Agreement and encouraging further collaboration in export finance. Event is free to attend for those with Blue Zone accreditation. (UNEP FI is not able to provide accreditation).

Notes to Editors

About UNEP Finance Initiative

United Nations Environment Programme Finance Initiative brings together a large network of banks, insurers and investors that collectively catalyses action across the financial system to deliver more sustainable global economies. For more than 30 years the initiative has been connecting the UN with financial institutions from around the world to shape the sustainable finance agenda. We’ve established the world’s foremost sustainability frameworks that help the finance industry address global environmental, social and governance (ESG) challenges.

Convened by a Geneva, Switzerland-based secretariat, more than 500 banks and insurers with assets exceeding US$170 trillion work together to facilitate the implementation of UNEP FI’s Principles for Responsible Banking and Principles for Sustainable Insurance, as well as three UN-convened net-zero alliances. Financial institutions work with UNEP FI on a voluntary basis and we help them to apply the industry frameworks and develop practical guidance and tools to position their businesses for the transition to a sustainable and inclusive economy. www.unepfi.org.

For more information and to arrange interviews, please contact:

Miranda Barham  and Sally Wootton