EU ECA fossil fuel phase-out tracker reveals EU Member States’ lagging commitment to Paris Agreement goals in export credit policies
Our new report titled EU ECA fossil fuel phase-out tracker by Both ENDS, Counter Balance and Oil Change International sheds light on the concerning lack of harmony between EU Member States' export credit climate policies.
The report was updated on April 17th, following new responses by Member States on their respective policies.
Despite increasing global efforts towards sustainability, export credit agencies (ECAs) play a key role in providing loans, guarantees and insurance backed by public budgets to companies from their countries, including polluting industries. At present, ECAs continue to be the world’s largest international public financiers of fossil fuels, sorely misaligned with climate goals.
In March 2022, during the French Presidency of the Council of the EU, Member States made a crucial commitment to end public finance through ECAs for fossil fuel energy projects by the end of 2023. Recent findings reveal that half of the 23 EU member states with ECAs are fulfilling their commitments, while the others lag behind.
Concerns and warnings
Our findings show that only eight EU Member States, such as Denmark, France and the Netherlands, have fully implemented policies to phase out public support for fossil fuel projects. Conversely, five countries, including Bulgaria, Estonia, Lithuania, Poland and Portugal, have no formal policy but claim not to finance such projects. However, a worrying trend is emerging, with 10 Member States failing to honour their commitments. Some, such as Croatia, the Czech Republic and Greece, have yet to establish a policy to phase out export credit support for fossil fuels. Others, such as Austria and Italy, have published policies that are not in line with climate science and the mandatory 1.5°C pathway.
In fact, in 2023 alone, Italy greenlit financing totaling nearly €1,7 billion for five fossil fuel projects. Its fossil finance policy, unveiled at the beginning of the year, contains the most significant exemptions for fossil fuels compared to other signatories to the global Clean Energy Transition Partnership and Export Finance for the Future (E3F).
Marius Troost (Both ENDS) says: “To stay within the 1.5°C limit, we must halt funding for fossil fuel projects. Despite EU member states' agreement in 2022 to cease public support for oil and gas projects via export credits, not all have followed through. It's time for non-compliant countries to match commitments with action by implementing climate policies grounded in science. This issue will be addressed at an event on April 25th, where we hope to see laggards elevate their ambition”.
Call to action
The report calls for swift and decisive action to align export credit policies with the imperatives of climate justice and sustainable development, for the member states who have not yet implemented the 2022 Council conclusions.
The report was updated on April 17th, following new responses by Member States on their respective policies.
For more information
Read more about this subject
-
Blog / 15 April 2024
The year of truth: EU Member States urged to combat deforestation
The EU is the world's largest "importer of deforestation," due to the huge volumes of unsustainably produced soy, timber, palm oil, and other raw materials that EU member states import. After many years of delay, the European Parliament and the European Council passed a law in December 2023 to address this problem: The EU Deforestation Regulation (EUDR). Both ENDS is part of a broad coalition of organizations that have been pushing for this European legislation. However, there is now a serious delay, and perhaps even postponement, of the law's implementation. Objections have been raised by a number of member states, who are sensitive to lobbying by certain business sectors and producer countries.
-
Press release / 14 December 2020
Record submissions to public consultation urge EU to act on deforestation
Brussels, Belgium - 14 December
A landmark 1,193,652 submissions to the EU's public consultation on deforestation were handed over to the European Commission this afternoon, all of which demanded a strong EU law to protect the world's forests and the rights of people who depend on them. The one million+ submissions have made this the largest public consultation on environmental issues in the history of the EU, and the second largest ever.
-
News / 15 October 2020
Land rights for Indigenous Peoples to protect their forests
Institut Dayakologi works to preserve Indigenous Peoples' livelihoods and cultures in West Kalimantan. One of their central goals is to gain ancestral land rights for Indigenous communities. This is not only essential for the security of these communities, but also for the forests and ecosystems on which they depend for their livelihood, identity, culture and customs.
-
News / 10 September 2020
Have your say on the EU’s deforestation policy
The world's forests are under threat. Remaining forests – havens of precious biodiversity and the lungs of the planet – are being cleared to make way for beef, soy, sugar and palm oil production, mining and other industrial activities, fuelled by increasing demand from Europe and other countries. But the good news is: you can help stop the destruction!
-
News / 29 June 2020
Global civil society pushes for mandatory environmental and human rights rules in the EU
On 23 July 2020 a global network of NGOs working to strengthen corporate accountability for environmental destruction and human rights abuses, including Both ENDS, published an open letter to European Commission DG Justice Commissioner Reynders. The letter is a response to his recent commitment to propose legislation in 2021 on both corporate due diligence and directors’ duties as part of an initiative on sustainable corporate governance.
-
Event / 11 May 2019, 20:00 - 22:00
The European Election Debate: do we opt for the climate and a fair Europe? (in Dutch)
Europe's future. What does it look like and, more importantly, what kind of Europe do we want?
-
Press release / 10 September 2020
Press release: Golden opportunity to stop deforestation caused by EU consumption
100+ NGOs launch #Together4Forests urging EU action
Fires raging in the Amazon are started deliberately to make way for large-scale industrial agriculture – and EU market demand for commodities produced on former-forest land is adding fuel to the fires. Globally, the EU is responsible for over 10% of forest destruction through its consumption of commodities like meat, dairy, soy for animal feed, palm oil, coffee and cacao.
-
Press release / 7 May 2019
Press release: European stakeholders call for immediate action in face of climate emergency
Brussels, 7 May 2019 - In an unprecedented Climate Action Call published today, a broad coalition is urging European leaders to take decisive action to respond to the climate emergency. Hundreds of European cities, regions, businesses, youth and faith groups and civil society organisations working on climate, human rights, litigation, mobilization, sports and health call upon leaders to profoundly alter the way we run our societies and economies to limit temperature rise to 1.5°C.
-
News / 25 January 2024
'We can not have a transition when we do not talk about consumption patterns'
The parliamentary elections in the Netherlands are over, and the dust has somewhat settled. No matter what government emerges from the process, one thing is clear: in the Netherlands the main focus is on the Netherlands. Foreign affairs were hardly mentioned during the elections and the same applies to the process of forming a new coalition. More alarmingly, some of the winners in the elections want to cut themselves off even further from the world around us.
-
News / 16 October 2020
Restoring forests, “free supermarkets” for Cameroon’s inhabitants
To Eric Wirsiy, director of CENDEP, the importance of forests is clear: not only do they function as a "free supermarket", providing foods and other things to local communities, but they are crucial to make landscapes resilient to climate change and other impacts.
-
News / 21 January 2019
Launch of European campaign against unfair investment agreements
Today an alliance of more than 150 organisations, trade unions and social movements in countries across Europe is launching a joint programme against unfair trade and investment agreements, and especially against the controversial Investor-to-State-Dispute-Settlement (ISDS) mechanism. Under ISDS, investors can bring complaints against states whose social and environmental legislation pose a threat to their profits.
-
Publication / 25 December 2015
-
News / 18 November 2019
European Investment Bank goes fossilfree
Good news for the climate: last week, the European Investment Bank (EIB) decided to stop investing in fossil fuels by 2021. This is part of its new energy strategy.
-
News / 30 July 2019
EIB wants to stop fossil investments: big step in the right direction
The European Investment Bank (EIB) has published its new policy for energy investments. In the new draft policy, the bank states to stop investing in fossil fuel related projects from 2020. This is good news for the climate, so Both ENDS and partners are happy with this draft policy. The shareholders of the bank, the member states of the European Union, still have to approve it.
-
Blog / 24 June 2019
The European Investment Bank should withdraw from gas investments
The European Investment Bank EIB should get rid of its gas-investments, and the Netherlands can take the lead in this. The Netherlands appears to be relying less and less on gas in its energy policy, and also seems to focus on gas-free investments at the EIB. Now it is important to maintain this position and also convince the other EU countries.
-
Blog / 18 January 2019
Unambitious and uninspiring: the European Commission’s proposal for stepping-up action on global deforestation
After five years of equivocation the European Commission has proposed a ‘roadmap’ for stepping-up EU action to address its contribution to global deforestation. Despite the escalating impact of EU trade in forest-risk commodities, regardless of repeated calls from the European Parliament for regulatory measures and contrary to the conclusions of the Commission’s own feasibility study in support of legislative intervention, the Commission has ruled-out out any new initiatives, let alone any legislative measures. The Commission’s solution to this complex problem: policy coherence.
-
News / 13 November 2023
Recommendations to the foreign financiers of Argentina's lithium rush
To realise the energy transition, large quantities of minerals and metals such as lithium, cobalt and rare earth metals are needed. These raw materials are mainly extracted in countries in the global South, and unfortunately this is almost always accompanied by human rights violations and environmental destruction. Today – also in light of EU Raw Materials Week that is happening this week – Argentinian organisation FARN and Both ENDS publish a joint report on the extraction of lithium in Argentina.
-
Publication / 13 November 2023
-
News / 1 November 2024
Both ENDS at COP29: advocating for gender just climate finance
On November 11th, the 29th UN Climate Conference will start in Baku, Azerbaijan. Just like previous years, Both ENDS will be there to advocate for local access to climate finance, and to support our partner organisations in their advocacy work. How do we do that, and what are our hopes (and worries) about this 29th edition of the UNFCCC COP? We asked Marius Troost, who will be joining COP29 together with Daan Robben.
-
News / 20 February 2023
Almost 60 organisations send a letter about fossil export support to Dutch Parliament
Today, a letter, undersigned by almost 60 organisations from countries that face the consequences of fossil fuel projects or stand in solidarity, has been sent to the Dutch Members of Parliament. This Thursday, a debate about the export credit facility and the policies around it, will take place in the Dutch Parliament. The coalition calls upon Dutch politicians and policy makers to stand up against any form of export support for fossil fuel projects that are to be executed by Dutch companies abroad, expecially in the global South.