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ECA's green export finance bypasses developing nations

  • Market: Emissions, Hydrogen
  • 29/01/25

The "greening" of export credit agency's (ECA) finance which occurred in the past decade has largely bypassed developing countries, with investments mainly flowing to higher-income countries, according to a study on ECA transactions.

The study, carried out by researchers from the business schools HEC Lausanne, ETH Zurich and HEC Paris, shows that ECA energy finance going to lower-income countries dropped to below 30pc in 2022-23 from 47pc in 2013-15. ECAs, including export-import banks, are state-backed agencies that help national exporters finance deals abroad by providing guarantees or loans.

The share of ECA renewables commitments — mostly offshore wind and, increasingly, green hydrogen — rose to around 40pc in 2022–23, from under 10pc in 2013. The complete phase-out of fossil fuel financing appears "distant", the researchers noted.

While ECAs handle financing volumes "on a par with multilateral development banks such as the World Bank", the scope and direction of their energy investments have largely remained "opaque", the researchers said. The study is based on an analysis of almost 1,000 transactions between 2013-23 which financed energy-related infrastructure and were supported by ECAs. For some key ECA countries such as China or Canada, data is only partially available.

The study also reveals "notable" disparities between countries. Most members of the Export Finance for Future coalition (E3F), a group of European countries committed to aligning their export finance with the Paris climate agreement, have introduced stricter fossil fuel exclusions and are boosting their renewable portfolios. At the same time, major players like South Korea, Japan, and China have maintained significant levels of oil and gas lending.

OECD countries should introduce "more rigorous climate policies" and renew international cooperation, the researchers said, particularly with non-OECD countries such as China. The OECD — where ECA terms and conditions are negotiated — could relaunch the International Working Group on ECAs, they said, to help ensure that countries phasing out support for fossil fuels do not see their market shares grabbed by others.

Better renewable investment support via ECAs could help scale up the new collective quantified goal (NCQG) on climate finance, set at a minimum of $300bn annually by 2035 at the last UN Cop 29 climate summit in November, the researchers said. And ECA mandates could also be broadened to accommodate the needs of lower-income regions.

"It is high time for ECAs to complete the shift to renewable energy, and through carefully designed policies and international cooperation, become true catalysts for a rapid and just energy transition," lead author Philipp Censkowsky from HEC Lausanne said.


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25/02/25

Australia’s Woodside sees robust demand for LNG

Australia’s Woodside sees robust demand for LNG

Sydney, 25 February (Argus) — Australian independent Woodside Energy sees LNG demand exceeding supply into the 2030s as project delays lead timelines for nearly 30mn t/yr of new capacity to slip into the next decade, chief executive Meg O'Neill said after releasing the firm's 2024 annual results today. Headwinds affecting some projects and "ongoing, robust demand" within Asia-Pacific will prevent any LNG supply glut, despite easing regulatory hurdles under the Trump administration, O'Neill told investors. Such headwinds could also impact Woodside. The company's 14.4mn t/yr North West Shelf (NWS) terminal is still waiting for federal consent to continue operations past 2030, after passing state government scrutiny last year following six years of assessments. And the planned 11.4mn t/yr Browse project hinges on NWS approvals being granted, with Woodside preferring a decision is made before Australia's elections in May, in which Green and other climate-conscious MPs may win a balance of power. O'Neill said the fully-priced engineering, procurement and construction contract with engineering firm Bechtel for the initial stage of its Louisiana LNG project was "differentiating" with other nearby proposed terminals requiring re-pricing, as Woodside aims to sell down 50pc of the terminal. Woodside will not take a final investment decision (FID) on Louisiana unless it is confident it has partners signed up or extremely close, O'Neill said, referencing the sale of 49pc of Pluto train 2 at FID before it later offloaded part of the Scarborough gas field that will supply the project. "I think there's potential for us to have the whole 50pc [target] sold-down by FID," O'Neill said, adding that "deep negotiations" were underway as the project aims for FID-readiness by 31 March. Woodside said it will cut expenditure on exploration and its New Energy division by $150mn to focus on producing assets. Exploration outlay was $342mn in 2024 and is guided at $200mn for 2025, while the savings from New Energy will mainly come from pausing its 60 t/d H2OK project in the US . In New Energy, Woodside will prioritise its 83pc complete, 1.1mn t/yr US Beaumont ammonia project ahead of first output in July-December and first low-carbon or blue ammonia using carbon capture and storage in the second half of 2026. Cost of production for phase 1 will be $260-$300/t. Woodside made a profit of $3.57bn in 2024, up from $1.66bn for 2023 but below 2022's record of $6.5bn. It posted lower realised oil and gas prices of $63.6/bl of oil equivalent (boe) in 2024 from $68.6/boe in 2023, despite its output rising to 530,000 boe/d. The firm kept its 2025 guidance unchanged at 186mn-196mn boe (510,000-537,000 boe/d). Forecast capital expenditure of $4.5bn-5bn is focused on its 80pc complete Scarborough and 20pc complete Trion projects. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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24/02/25

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Germany’s Habeck fears climate policy regression


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24/02/25

Germany’s Habeck fears climate policy regression

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Grangemouth refinery site to get $253mn in public funds


24/02/25
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24/02/25

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