For most policymakers, export credit agencies (ECAs) are financial tools that boost national companies’ business endeavours abroad. But a recent research project conducted by Philipp Censkowsky, Paul Waidelich, Igor Shishlov, and Bjarne Steffen reveals the profound impact they have on the energy transition. Our study analysed 921 energy-finance deals backed by ECAs from 31 countries between 2013 and 2023.

We used commercial transaction data to track how much ECAs invested in fossil fuels versus renewable energy. We also examined key policy shifts to understand how international agreements influence the decisions ECAs make.

Are ECAs slowing down or speeding up the low carbon transition? For years, export credit agencies have been key players in global trade finance, providing state-backed loans, insurance and guarantees to support national exporters. But their role in the energy transition is now under scrutiny.

While some ECAs have made strides in shifting finance away from fossil fuels, many remain deeply entangled in financing oil, gas and even coal — the dirtiest fuel of them all.

Our research underscores this reality. ECAs are major enablers of energy infrastructure worldwide, and their continued support for fossil fuels is at odds with international climate commitments.

What’s holding ECAs back from making a full transition?

These agencies have historically played a crucial role in financing fossil fuel projects by de-risking investments for private lenders. This influence is massive — comparable to multilateral development banks — yet their role in shaping the energy transition has been largely underexplored in academic research.

In our study, we found a clear trend:

ECAs are slowly pivoting towards renewable energy, but fossil fuel projects still receive a large share of support, even as international pledges like the Glasgow Statement call for the phasing out of international fossil fuel financing.

Our paper shows that, in 2013, only 9% of ECA energy commitments went to renewable energy technologies (RETs). By 2023, that share had jumped to over 40%.

While this suggests a significant shift, the total dollar amount of fossil fuel financing remains high.

Certain ECAs, particularly those in Europe, have........

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