Export credit agencies (ECAs) are state institutions or state backed companies that provide finance to companies to facilitate overseas investments and sales. They provide loans, guarantees and insurance which enhance the ability of domestic companies to engage in international trade, supporting export deals that would otherwise involve considerable financial risk.
ECAs represent one of the world’s largest sources of public financial support for corporate investments in developing countries as well as other countries, providing buyer credit guarantees to lending banks. Many large-scale infrastructure, agribusiness and natural resource projects would not be financed and realised without their backing.
However, there is a lack of international guidelines preventing the export credits from having a negative impact on environment, climate or human rights. Vedvarende Energi is working for international regulations and a code of conduct for ECAs to prevent future damage from their export promotions.