Export credits

Climate Change

 

last updated:  7 July 2014  --  Quick Link to this page: http://www.oecd.org/tad/xcred/climatechange.htm

2014 Sector Understanding: A new, revised Sector Understanding on Renewable Energy, Climate Change Mitigation and Adaptation, and Water Projects (CCSU) has been agreed by the Participants to the Arrangement on Officially Supported Export Credits and is effective as of 15 July 2014. It is Annex IV of the Arrangement on Officially Supported Export Credits.

The revised CCSU allows extended repayment terms up to 15 years for "Climate Change Adaptation" projects, in addition to the scope of projects already agreed in the initial 2012 CCSU. In order to qualify for the extended repayment terms, "Climate Change Adaptation" shall be fundamental to the design of the project. The project’s proposal shall include an analysis of relevant climate change-related risks and vulnerabilities, and how the proposed measures or technologies will directly address them. Such analysis shall also be reviewed by an independent third-party. In any case the useful life of the project supported shall exceed 15 years.

The newly agreed terms and conditions for Climate Change Adaptation projects shall be reviewed in 2018 in the light of experience, market conditions and evolution of international initiatives.

2012 Sector Understanding on Export Credits for Climate Change Mitigation, Renewable Energies and Water Projects (the "CCSU") has been agreed by the Participants to the Arrangement on Officially Supported Export Credits as a replacement to Annex IV of the Arrangement on Officially Supported Export Credits (the 2009 Sector Understanding): it becomes effective from 28 June 2012. The CCSU upgrades the prevailing export credits disciplines by reaching three policy objectives:

  • offering suitable financial terms and conditions (tenors up to 18 years) for the support of export projects in areas where the demand tends to increase rapidly, whether in water projects, renewable energy projects, or climate change mitigation projects.
  • favouring, whenever possible, greener energy sources such as renewable (solar, wind, biomass, hydro power) whilst keeping stricter financial terms and conditions to fossil-fuelled power projects.
  • including a mechanism to incorporate over time new, ground-breaking emerging technologies into the scope of the CCSU.

2009 Sector Understanding:  This is the 2009 Sector Understanding on Export Credits for Renewable Energies and Water Projects, which is Annex IV to the Arrangement on Officially Supported Export Credits and which is effective from 1 July 2009.

Financing climate change action portal: The OECD works with governments to promote good practice to scale up and better target public and private finance to support climate-friendly investment

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