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Export finance and the green transition

Author

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  • Andreas Klasen
  • Roseline Wanjiru
  • Jenni Henderson
  • Josh Phillips

Abstract

As emissions reach record levels, governments must implement and strengthen climate policies for the global pathway to net‐zero emissions by 2050. Climate finance plays a crucial role in the net‐zero transition. It refers to local, national, or transnational financing seeking to support mitigation and adaptation actions that address climate change. Public export–import banks (EXIMs) and government export credit agencies (ECAs) are highly influential actors for climate action. Although there is no consensus among EXIMs and ECAs on how to define climate finance, 20 institutions assessed in this research give evidence that they strongly support climate‐action‐related transactions: EXIM and ECA financing, guarantees, and insurance amounted to EUR 6.7–8.4 billion in 2020, much more than estimated by the Climate Policy Initiative (CPI). However, the results also reveal that EXIM and ECA lending, guarantee, and insurance activities must rise substantially in order to contribute to climate finance volumes required by 2030 as estimated by CPI. To retain their current proportion relative to other climate finance flows, assessed institutions would need to increase their climate financing 6.8 times to up to EUR 57.4 billion by 2030.

Suggested Citation

  • Andreas Klasen & Roseline Wanjiru & Jenni Henderson & Josh Phillips, 2022. "Export finance and the green transition," Global Policy, London School of Economics and Political Science, vol. 13(5), pages 710-720, November.
    • Handle: RePEc:bla:glopol:v:13:y:2022:i:5:p:710-720
    DOI: 10.1111/1758-5899.13121
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    References listed on IDEAS

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    Cited by:

    1. Andreas Klasen & Jan Vassard, 2023. "The new OECD arrangement on export credits: Breakthrough or bad compromise?," Global Policy, London School of Economics and Political Science, vol. 14(5), pages 958-961, November.
    2. Alexander Braun & Marius Fischer & Csilla Schreiber-Orosz, 2024. "Why banks insure structured commodity trade finance risk: evidence from a worldwide survey," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 49(3), pages 537-570, July.

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