Netherlands continuing to push for greener export finance
The Netherlands is working together with a coalition of countries to make global export finance even greener. This is the outcome of the online Export Finance for Future Conference (E3F) hosted from The Hague on Wednesday 24 November. The conference complements COP26 held in Glasgow recently, where countries signed a statement to end direct public funding for international fossil fuel energy projects by 2023.
During the conference, it was agreed to provide more insight into green export finance and make it more measurable, so that progress can be tracked and compared, including against the Paris climate goals. In addition, the countries have agreed to increase efforts to develop new forms of green export finance and promote cooperation on this theme in international forums like the Organisation for Economic Cooperation and Development (OECD).
All members of the E3F coalition signed the COP26 statement. The statement sets out agreements to accelerate the green energy transition through new export finance policies and end government support for the fossil fuel energy sector.
Cooperation crucial
State Secretary for Finance Hans Vijlbrief chaired the E3F Conference on behalf of the Dutch government: ‘The fact that we are organising this conference so soon after COP26 in Glasgow underlines that we, the Netherlands, want to work globally for greener export finance. That's crucial. Because we want to both achieve our climate goals, stimulate future economic growth and maintain a level playing field. And the only way to do that is by working together to use export finance for sustainable outcomes. The Netherlands will continue to push for this via the E3F coalition.’
In order to monitor progress, the E3F countries have agreed to report jointly on green transactions. The first such report will be published within the next six months. The coalition will also continue to work to involve as many other countries as possible in this initiative, partly with a view to creating a level playing field. During the conference, Belgium, Finland and Italy became members of the coalition.
National measures
The government has also introduced various national measures to make export finance – specifically export credit insurance – greener. These measures involve tracking ratios of green to fossil fuel investments in portfolios and providing broader coverage options for green transactions.
Export Finance for Future (E3F) was launched in spring this year by Denmark, France, Germany, the Netherlands, Spain, Sweden and the United Kingdom. The E3F Statement of Principles can be found here.