News item | 03-11-2022 | 15:59
From 1 January 2023, companies and banks will no longer be eligible for export credit insurance (EKV) for new projects in the fossil energy sector, unless these are in line with the international climate goal of limiting global warming to 1.5 degrees. The ekv will also be made more attractive for green projects, to support companies in the energy transition. The elaboration of the statement from last year’s COP26 climate conference in Glasgow is an important step in the further greening of export credit insurance. In elaborating the COP26 statement, the government sought coordination with other signatories in order to guarantee a level playing field as much as possible.
In line with the statement signed by the government at COP26, the intended government policy is aimed at ending new public support via the ekv for the fossil energy sector abroad as of 1 January 2023. This concerns activities aimed at the exploration and extraction, processing, storage and transhipment and transport of fossil fuels and electricity generation by means of fossil fuels. This elaboration of the COP26 statement is an important step in the further greening of export credit insurance.
Seizing opportunities in energy transition
Although the energy transition can be challenging for companies with many activities in the fossil sector, this development also offers opportunities for the Dutch business community. In this way, companies can use their knowledge for climate projects worldwide. In addition, the energy transition will require a great deal of investment in green projects in the near future. The government would like to take advantage of these opportunities and is committed to doing so. Many measures have already been introduced in recent years to better support green transactions with the ekv, such as insuring more risky green transactions and green cover for investments in green innovations. With additional measures, the government is committed to further greening export credit insurance. For example, a start is being made on proactively setting up credit lines for foreign buyers of Dutch products, so that buyers can obtain an EQC-covered credit line for purchasing goods and services in the Netherlands. In addition, the aim is to have 70% of the assignments under the development cooperation infrastructure programs carried out by Dutch companies.
Strict conditions exceptions
Due to the energy transition, certain investments in fossil infrastructure will continue to be necessary in the coming years to provide our energy security. The ekv therefore remains accessible under strict conditions for investments in existing fossil infrastructure in line with the 1.5 degree scenario. An important condition is that the economic life of the infrastructure is not extended. Other examples of exceptions are fossil infrastructure support services, multipurpose ports and electricity production in low-income countries with extreme energy poverty. Due to current geopolitical developments, the proposed policy also offers scope for projects that safeguard the security of supply in Europe and are in line with European REPowerEU policy.
Careful implementation
Because many projects have a long lead time, the government has opted to work with a transition period of one year. In this respect, applications submitted before January 1, 2023 at the latest on December 31, 2023 can lead to a policy. The Netherlands has opted for careful implementation.
Since the signing of the COP26 statement in Glasgow (2021), companies and NGOs have been involved in the elaboration. At an international level, coordination has been sought about the elaboration of the COP26 statement with co-signatories. In this way, the government wants to ensure a careful introduction of the new policy and a level playing field for companies. In the coming period, the government will continue to consult with other countries that have signed the COP26 statement. The elaboration is therefore intended policy that can still be revised if policy developments in other countries give reason to do so.