At COP29 the UN-convened Net-Zero Export Credit Agencies Alliance (NZECA) introduced its Target-Setting Protocol, the first dedicated tool to guide export credit agencies (ECAs) and export-import (ExIm) banks in establishing and implementing net-zero targets to boost their decarbonization efforts.
The Protocol provides NZECA members with a framework for setting both long-term and intermediate science-based climate targets, along with guidelines for related disclosures. By leveraging best practices from financial institutions already on the net-zero path, the Protocol aims to help ECAs and ExIm banks set ambitious targets within their operational capacities, balancing their climate commitments with their core roles in promoting exports and 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 have pledged to align their portfolio greenhouse gas (GHG) emissions with a net-zero pathway by 2050 or sooner, supporting the goal of limiting temperature rise to 1.5°C above pre-industrial levels. They will set and disclose intermediate science-based targets for 2030 and have committed to ending direct support for new international fossil fuel projects without abatement.
While the Protocol is designed to support NZECA members, it is also available for ECAs and ExIm banks worldwide, encouraging global efforts in decarbonising international trade. Regular updates will be provided, and NZECA members will report on their target-setting progress in an annual report.
Launched at COP28 in December 2023, NZECA initially included eight leading ECAs, in collaboration with the University of Oxford’s Innovation and Knowledge Hub and the Future of Climate Cooperation. Its focus has been on building best practices and a consensus on what a net-zero-aligned ECA could achieve.
The Protocol release marks the Alliance’s first substantial move toward realising its members’ commitments. ECAs will independently assess Protocol implementation, aligning their climate efforts with other public and private financial entities, insurers, exporters, and climate initiatives to foster coordinated decarbonisation.
NZECA also welcomed a new member today, Finnvera of Finland, raising the number of affiliated and committed ECAs to nine. Jussi Haarasilta, Finnvera’s Executive Vice President for Large Corporates, will join the NZECA Steering Group, the Alliance’s main governance body.
