EU collaborates with other OECD countries to propose ban on export credits for coal-fired power projects
Organization for Economic Co-operation and Development (OECD) countries hold an extraordinary meeting today (15 September) and Thursday (16 September) to discuss a possible ban on export credits for international coal-fired power generation projects without measures compensation. Discussions will focus on a proposal presented by the EU and other countries (Canada, Republic of Korea, Norway, Switzerland, UK and US) earlier this month. The proposal supports the greening of the global economy and is an important step in aligning the activities of export credit agencies with the goals of the Paris Agreement.
Export credits are an important part of promoting international trade. As a participant in the OECD Arrangement on Officially Supported Export Credits, the EU plays a major role in efforts to ensure a level playing field at international level and to ensure the coherence of the common objective of combating climate change. The EU has pledged to end aid for export credits for coal without offsetting measures, and at the same time commits at the international level to a just transition.
In January 2021, the Council of the European Union called for the global phasing out of environmentally damaging fossil fuel subsidies on a clear timetable and for a resolute and just global transformation. towards climate neutrality, including the gradual phase-out of coal without compensatory measures in energy production and, as a first step, the immediate end of all funding for new coal infrastructure in third countries. In its February 2021 Trade Policy Review, the European Commission pledged to propose an immediate end to export credit support for the coal-fired electricity sector.
In June this year, G7 members also recognized that continued global investment in non-reduction coal-fired electricity generation was inconsistent with the goal of limiting global warming to 1.5 °C and pledged to end new direct government support for global coal-fired power generation internationally by the end of 2021, including through government funding.