Export finance coalition launched to fight climate change (14 Apr. 21)
Seven countries launch international coalition Export Finance for Future (E3F) to align export finance with climate objectives – Communiqué issued by the Ministry of the Economy, Finance and the Recovery¹
During a virtual meeting on 14 April, under the chairmanship of Bruno Le Maire, French Minister of the Economy, Finance and the Recovery, the governments of Denmark, France, Germany, the Netherlands, Spain, Sweden and the United Kingdom solemnly launched the Export Finance for Future (E3F) coalition to harness public export finance as a key driver in the fight against climate change.
For the first time, a group of countries publicly demonstrate their willingness to both massively increase support for sustainable and climate-friendly projects and impose restrictions on fossil fuels overseas. First movers taking coordinated action is essential to build momentum at a global level and accelerate the transition to a low-carbon economy. Leading by example, the E3F coalition aims at gathering quickly the largest number of new member countries so as to gain a critical mass, both to accelerate the progressive phasing out of carbon-intensive projects and significantly increase the financial support to exporters’ projects compatible with the Paris climate agreement.
The seven signing countries today call upon all other countries to join the coalition and align export financing with climate objectives. The seven members of the E3F coalition adhered today to a set of principles and, in particular, commit to:
- Developing incentives to better support the development of exports to sustainable projects in all sectors of the economy;
- Ending trade and export support directed to unabated coal power;
- Reviewing our trade and export finance support to fossil fuels and assessing how to best phase it out, taking into account industries’ respective characteristics;
- Starting a climate-oriented review of our respective trade and export finance activities, so as to have a shared and documented understanding of their climate impacts, and working on improving transparency on climate-related information, in particular when it comes to the identification of sustainable projects;
- Promoting the initiative and engaging with other providers of official trade and export finance, in all relevant fora and in particular in the OECD, with a view to shaping a level playing field that would duly take the climate emergency into account.
Bruno Le Maire declared: “Finance must be a driving force in the fight against global warming. The Export Finance for Future coalition is part of this strategy. Today, for the first time, several countries publicly committed to massively increase support for sustainable projects and to assess how to best phase out export finance support to oil and gas industries. The moment is decisive. I invite all countries sharing our convictions to join this alliance to ensure full alignment between our national emission reduction strategies and our trade and export support policies and thus make a significant contribution to the fight against climate change. Ecological transition is the major challenge of the 21st century, and we can only take it up together.”
Source of English text: Ministry of the Economy, Finance and the Recovery website.