• World’s first net-zero alliance comprising public finance institutions, the UN-convened Net-Zero Export Credit Agencies Alliance, launches the first edition of its Target-Setting Protocol
  • The Protocol is a tool to help export credit agencies and export-import banks around the world play their part in accelerating the decarbonisation of international trade
  • Alliance also announces new member, Finland’s Finnvera bringing total membership to nine

Baku, 13 November 2024 – At COP29 today, the UN-convened Net-Zero Export Credit Agencies Alliance (NZECA) published its Target-Setting Protocol (the Protocol), its first tool to enable export credit agencies (ECAs) and export-import (ExIm) banks set net-zero targets and put them into action to accelerate their decarbonisation ambitions.

This first version of the Protocol provides guidance to members on setting long-term and intermediate science-based climate targets and related disclosures, helping members to fulfil the commitments they have made. It builds on the experience of other financial institutions on the path to net zero and provides guidance on setting targets that are ambitious within their operational context. This is critical in ensuring that ECAs and ExIm banks can meaningfully participate in the net zero transition without compromising their core mandate of enabling exports and promoting economic growth.

“ECAs and ExIm banks are essential to climate action, because they have significant influence in global markets and the resources to support large-scale projects worldwide”, said Eric Usher, UNEP Finance Initiative Head. He continued, “by financing, insuring, and guaranteeing substantial amounts of international trade and investment, they can direct funds towards sustainable infrastructure, energy, and industrial projects – critical sectors that heavily impact the world’s carbon footprint and that the private sector alone may not be able to help finance.”

NZECA members commit to transitioning their portfolio greenhouse gas (GHG) emissions in alignment with the path to net zero by 2050, or sooner, consistent with a maximum temperature rise of 1.5°C above pre-industrial levels by 2100. Members set and disclose intermediate science-based targets for 2030 or sooner, consistent with a pathway to net zero by 2050 at the latest and have committed to ending new direct support for the international unabated fossil fuel energy sector.

While the Protocol is primarily developed for setting NZECA members on the path to net zero, it can also be used by a wide variety of ECAs and ExIm banks from around the world to accelerate the decarbonisation of international trade globally. It will be updated regularly, and members will report on their target-setting progress via an annual progress report.

The NZECA was launched in December 2023 at COP28 by eight leading export credit agencies in partnership with the Innovation and Knowledge Hub at the University of Oxford and the Future of Climate Cooperation, and has so far focused on collecting and systematizing the best practices of ECAs and ExIm banks on climate action and building a consensus view among leaders on what a net zero ECA could look like.

The publication of the Protocol is the first important step in converting members’ commitments into real life outcomes. Members will now assess implementation of the Protocol independently and within their country context. As members get started on setting and disclosing their science-based climate targets, they will also start working to align their efforts on climate action with other public and private banks, insurers and investors, as well as exporters and other existing climate initiatives and frameworks to ensure wider efforts on decarbonisation are coordinated and integrated.

The Alliance today announces its first new member, Finland’s Finnvera, bringing the total number of affiliate and committed members to nine ECAs worldwide. Jussi Haarasilta, Executive Vice President, Large Corporates at Finnvera will also join the NZECA Steering Group, the Alliance’s main governance body.

Download the Target Setting Protocol here.

Quotes from members:
  • “Public finance organisations are hugely important to supporting the flow of international trade. Through guarantees and insurance, export credit support will remain key to unlocking the critical mass of private finance needed to enable sustainable projects – this is why UKEF has committed to facilitate £10 billion in financing for clean-growth projects by 2029. These guidelines for decarbonisation target-setting are first-of-a-kind for export credit agencies, and will help us make meaningful progress towards net-zero.” – Tim Reid, CEO of UK Export Finance (NZECA Steering Group Chair)
  • “We are pleased to join the NZECA, an alliance that focuses on enabling exports, which is essential for Finnvera and Finnish export companies. Our aim is to be among the leading ECAs in influencing how emission targets are defined and how they are promoted in export credit operations” – Juuso Heinilä, CEO, Finnvera
  • “Participation in the NZECA allows us to collaborate globally, and ensure our efforts are aligned with international best practices. The target-setting protocol will encourage us even further in our climate transition work. We are dedicated to setting scientifically based climate goals for our financial portfolios in line with Sweden’s and SEK’s own 2045 net-zero targets.” – Magnus Montan, CEO, Swedish Export Credit Corporation (SEK)
  • ”ECAs have great potential to drive impactful change, but no single institution can transition the global economy on its own. That’s why the Net Zero Export Credit Agencies Alliance is crucial to deliver on the global climate mission. At this year’s COP, the focus is on collective goal setting to facilitate implementation, and similarly, the NZECA’s impact depends on the power of united effort. ECAs are working together to deliver on our goals and the strong tradition of collaboration from ECAs will help us pave the way to a net zero future” – Christian Ølgaard, CPRO at EIFO
  • “The launch of the Target-Setting Protocol marks a milestone achievement for NZECA. This protocol will serve as the foundation for EKN in developing and implementing net-zero targets for the guarantee portfolio. It will guide and monitor our progress toward achieving a net-zero portfolio. As more export credit agencies embark on their net-zero journeys, we believe that the NZECA Target-Setting Protocol will set the standard in our industry.” – Karin Wessman, Head of Sustainability, EKN
  • “The Target-Setting Protocol is one of the most important steps in the early stages of the route towards net zero. Its importance cannot be overstated as it sets out the most relevant decarbonization standard in the ECA’s universe. The fact that the Protocol has been built through the collaboration of different institutions is of special value as it ensures that the distinctive characteristics of the different types of ECA’s business and models have been taken on board”. – Beatriz Reguero, Chief Operating Officer State Account Business, Cesce.
  • “ECI is proud to be an affiliate member of NZECA. Over the past year, our affiliation has been crucial in highlighting sustainable and environmental goals for the greater good. We have been actively engaged in listening, learning, and supporting these initiatives. We aim to achieve full membership in the near future and align our climate-related and sustainability objectives with the overall protocol”. Her Excellency Raja Al Mazroui, CEO of Etihad Credit Insurance (ECI)

 

About the UN-convened Net-Zero Credit Agencies Alliance

The UN-convened Net-Zero Export Credit Agencies Alliance (NZECA) unites nine leading public finance institutions committed to delivering net-zero economies by 2050 by supporting the decarbonisation of trade and facilitating joint action from public and private finance. Launched in 2023 at COP28 by five founding members and three affiliate members in partnership with the University of Oxford, Future of Climate Cooperation and UNEP FI, this first-of-its-kind net-zero finance alliance consists of global public finance institutions that together supported an estimated $120 billion in international trade in 2022. The Alliance includes affiliate members that wish to commit to the goal of reaching net zero but require some support as they start their journey. They pledge to support the goal of attaining net-zero greenhouse gas emissions and advancing a just transition. Peer knowledge sharing with leading export credit agencies will help them accelerate their transition to net zero. Read more here.

 

About UNEP Finance Initiative

UNEP Finance Initiative (UNEP FI) brings together a large network of banks, insurers and investors that catalyses action across the financial system to deliver more sustainable global economies. For more than 30 years the initiative has been connecting the UN with financial institutions from around the world to shape the sustainable finance agenda. It has established the world’s foremost sustainability frameworks that help the finance industry address global environmental, social and governance (ESG) challenges. Convened by a Geneva, Switzerland-based secretariat, more than 500 banks and insurers with assets exceeding US$100 trillion are independently implementing UNEP FI’s Principles for Responsible Banking and Principles for Sustainable Insurance. Financial institutions work with UNEP FI on a voluntary basis and the initiative helps them to apply the industry frameworks and develop practical guidance and tools to position their businesses for the transition to a sustainable and inclusive economy. www.unepfi.org

 

Contacts

Export credit agencies interested in joining the alliance, should contact Elena Koritchenko, NZECA Project Lead, UNEP FI

For media requests, please contact Mustafa Chaudhry, Communications Co-Lead, UNEP FI