The reform of the OECD Arrangement aims to bolster the competitiveness and environmentally conscious practices of exporters utilizing state export credit guarantees. Aligning with the Paris Agreement on climate change and the current international trade landscape, the reform pursues two key objectives. Firstly, it seeks to modernize general financing conditions to provide greater flexibility for export credit guarantees. Secondly, it endeavors to offer enhanced support to export-oriented companies in transitioning towards more climate-friendly foreign business.
The overarching goal is to enhance the framework conditions for the European export industry, enabling it to meet the growing demand for climate-friendly technologies. Additionally, the reform aims to establish a fair playing field, preventing an undesirable competition for subsidies. The expansion of the scope of application of the Climate Change Sector Understanding (CCSU) lays the groundwork for increased demand for export credits related to climate-friendly exports.
The CCSU now includes extended financing conditions, such as an elongated repayment period of up to 22 years, benefiting specific areas, including energy storage, power transmission, battery manufacturing, electricity generation from “clean” hydrogen, hydrogen-related activities, production of “clean” ammonia, emission-free transport, and infrastructure. Transactions involving low-emission manufacturing, mining, and processing of minerals for clean energy are subject to case-by-case assessment through the Common Line procedure and can be financed with a maximum repayment period of up to 22 years. Moreover, existing project classes like renewable energies, water projects, adaptation projects, and carbon sequestration and storage will also enjoy extended maximum repayment periods in the future.
The more favorable conditions for climate-friendly transactions are intended to offset the limitations arising from the outcomes of the Council Conclusions of 15 March 2022, as reflected in the decision of the Management Board of EXIMBANKA SR to suspend official export credit support for fossil fuels related transactions after 2030.