Quantifying the shift of public export finance from fossil fuels to renewable energy


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Date

2025-01-29

Publication Type

Journal Article

ETH Bibliography

yes

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Abstract

By providing guarantees and direct lending, public export credit agencies (ECAs) de-risk and thus enable energy projects worldwide. Despite their importance for global greenhouse gas emission pathways, a systematic assessment of ECAs' role and financing patterns in the low-carbon energy transition is still needed. Using commercial transaction data, here we analyze 921 energy deals backed by ECAs from 31 OECD and non-OECD countries (excluding Canada) between 2013 and 2023. We find that while the share of renewables in global ECA energy commitments rose substantially between 2013 and 2023, ECAs remain heavily involved in the fossil fuel sector, with support varying substantially across technologies, value chain stages, and countries. Portfolio 'greening' is primarily driven by members of the E3F climate club, impacting deal financing structures and shifting finance flows towards high-income countries. Our results call for reconsidering ECA mandates and strengthening international climate-related cooperation in export finance.

Publication status

published

Editor

Book title

Volume

16 (1)

Pages / Article No.

900

Publisher

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Event

Edition / version

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Date collected

Date created

Subject

Organisational unit

09550 - Schmidt, Tobias / Schmidt, Tobias
09742 - Steffen, Bjarne (ehemalig) / Steffen, Bjarne (former)

Notes

Funding

948220 - Effective green financial policies for the low-carbon transition (EC)

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