The Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence was adopted by the OECD Council on 28 June 2012; it improves in many ways the 2007 Recommendation, which it replaces, by:
- providing more clarity for export credit agencies and customers, by re-structuring the provisions of the Recommendation, adding a new definitions section, and clarifying the scope of the Recommendation to align it better with the Arrangement on Officially Supported Export Credits;
- promoting coherence with related international instruments, by including provisions relating to the OECD Guidelines for Multinational Enterprises, incorporating the 2012 IFC Performance Standards as the reference standards for certain projects, and clarifying the use of other international standards and sources of guidance;
- addressing potential environmental impacts and potential social impacts equally throughout the Recommendation and explicitly including project related human rights impacts within the definition of social impacts;
- including greenhouse gas emissions within the examples of potential environmental impacts and incorporating provisions for reporting to the ECG both of projected annual emissions from projects where above 25 000 tonnes CO2-equivalent and of any actions taken to avoid, minimise and/or offset CO2 emissions for all new high carbon intensity fossil fuel power projects; and
- enhancing the provisions relating to exchanging information with other financial institutions and encouraging the use of international standards and adherence to the Recommendation by non Members.
In addition, in recognition that certain issues need further consideration, the new Recommendation also contains provisions for further technical work on the application of the Recommendation, in particular relating to greenhouse gas accounting and reporting, support for thermal and nuclear power plants, and addressing project-related human rights impacts. A report on the implementation of the Recommendation, which will include the results of this technical work, will be made to the OECD Council not later than three years from its adoption.
The full text of the Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (the “Common Approaches”) is available on the OECD website.
Governments provide official export credits, through Export Credit Agencies (ECAs), to support national exporters competing for overseas sales. Most official export credit support involves insurance or guarantee cover for credits provided by private financial institutions. ECAs can be government institutions or private companies operating on behalf of government.
The ECG Members are: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom and United States.