The countries of the Organization for Economic Cooperation and Development (OECD) hold an extraordinary meeting this Wednesday and Thursday to discuss a possible ban on export credits for international coal-fired power generation projects without compensation measures. Discussions will focus on a proposal submitted by the EU and other countries (Canada, Republic of Korea, Norway, Switzerland, the United Kingdom and the United States) earlier this month. The proposal supports the greening of the world economy and is an important step in aligning the activities of export credit agencies with the objectives 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 key role in efforts to ensure a level playing field at international level and to ensure the coherence of the common goal of combating climate change. The EU is committed to ending support for coal export credits without compensatory measures, while at the same time committing internationally to a just transition. In January 2021, the Council of the European Union called phasing out environmentally harmful fossil fuel subsidies globally on a clear schedule; and a resolute and fair global transformation towards climate neutrality, including the phase-out of carbon without offsetting measures in energy production and, as a first step, an immediate end to all financing of new coal infrastructure in third countries.
In its Trade Policy Review February 2021, the European Commission has pledged to propose the immediate halt of export credit support for the coal-fired electricity sector. In June this year, the G7 members also Recognized that continued global investment in the production of electricity from coal without reduction was incompatible with the goal of limiting global warming to 1.5 ° C and pledged to end new public support for the generation of electricity from coal internationally by the end of 2021, including through export finance.
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