Both ENDS
The Dutch export credit agency Atradius DSB is not aligned with the Paris Climate Agreement; on behalf of the Dutch State, it continues to strongly support investments in fossil fuels. This is the conclusion of a report by German research agency Perspectives Climate Research (PCR), in which the export credit agencies of the Netherlands and Japan are measured in terms of their climate ambitions and alignment with the Paris Agreement.
Since the signing of the Paris Climate Agreement, rich countries have provided almost 50 times as much export support for fossil fuel related projects as for clean energy projects in four African countries. This is the conclusion of a report written by five environmental organisations from Ghana, Nigeria, Togo and Uganda, in cooperation with Friends of the Earth Netherlands and Both ENDS. The rich countries insured energy projects with a total value of 11 billion US dollars through their export credit agencies (ECAs). More than half of this export support is related to fossil fuels. Only 1% went to sustainable renewable energy.
The government provides an average of 1.5 billion euros a year in export support for fossil projects by Dutch companies, in the form of insurance and guarantees. The climate crisis requires that the Netherlands and other countries stop providing export support for fossil energy projects, whether it be coal, oil or gas, before the end of this year.
Many countries heavily support fossil fuel investments abroad through their export credit agency (ECA). This contributes to carbon lock- in, whereby companies or even countries commit themselves to a certain amount of greenhouse gas emissions for the lifetime of the infrastructure — oftentimes years or even decades. This seriously delays the transition to renewable energy sources, and is certainly not in line with Art. 2.1c of the Paris Agreement.
Highlighting the impacts caused by export finance in the global South, this side event will provide concrete recommendations to decarbonize export credit agencies.
Today, two independent experts brought out a legal opinion on the obligations of countries and their export credit agencies under international law in relation to export support for fossil fuels. According to the report, emissions by fossil fuels and the related infrastructure need to be reduced urgently.
Julio Bichehe Erneste of Farmers Union Cabo Delgado Mozambique (UPC) on a side event of COP26 in Glasgow, speaking about the negative impacts of export support for fossil fuel projects for local people and their enrironment, and about the need to support renewable energy projects instead.
Almost 40 civil society organisations and networks from around the world, including Both ENDS, today sent a letter to Dutch Minister for Foreign Trade and Development Cooperation Sigrid Kaag and State Secretary for Finance Hans Vijlbrief. They are asking the ministers to ensure that the expansion of export credit insurance as a result of the Corona crisis contributes to a green recovery.
"The mangroves were choking, gasping for air. When the dam was partially opened, they could finally breathe again. It was the breath that the animals, the fish in the rivers, the crabs, shrimps and oysters had all been craving."
On the northeast coast of Brazil, activities have been underway since 2007 to develop and extend the port of Suape. The port is being developed partly to support oil drilling along the Brazilian coast. The project is controversial because of the disastrous impact it is having on the natural environment, the rivers, the mangroves, marine life and the people who have lived in the region for many generations. Together with Fórum Suape, specially set up to combat the development of the port, Both Ends has been working for almost ten years to protect the rights of local communities in and around Suape. Now there has been a breakthrough – literally. In August of last year, a controversial dam in the Rio Tatuoca that was destroying the mangroves and the aquatic life in the area was partially dismantled. We spoke to Mariana Vidal,* project coordinator at Fórum Suape, about how that came about and what changes have taken place in the area since.
