New export credit rules for coal fired power plants

OECD Participants to the Arrangement on Officially Supported Export Credits have agreed new rules on coal-fired power plants, including restrictions on export credits for the least efficient coal-fired power plants.

The new agreement will remove support for large super and sub-critical coal-fired power plants, while allowing support for smaller sub-critical plants in poorer, developing countries. “After two years of intense negotiations, the agreement represents a first important step towards aligning export credit policies with climate change objectives to achieve lower emissions”, says Pekka Karkovirta, vice president for international relations in Finland’s export credit agency Finnvera and Chairman of the Participants to the Arrangement.

The private sector is expected to follow suit in with the now agreed public sector agreement, which could mean increasing the emission cuts in the future. The new agreement will also improve the competitive position of the Finnish high technology.

The 2015 United Nations Climate Change Conference in Paris negotiated a global agreement on reduction of climate change. The agreement was accepted by 196 countries and parties. The agreement sets a goal of limiting global warming to less than 2 degrees Celsius with an additional commitment to pursue efforts to limit the warming to 1.5 degrees. Finnish scholars and specialists have stated that Finland will benefit from the reduction of global warming economically. Finnish cleantech companies have developed technological solutions to curb emissions. We believe that global demand for Finnish cleantech companies will increase in the future.

Finnvera supports exports of new clean tech technologies

The OECD agreement on restricting financial support for certain coal fired power plants together with the UN agreement on restrictions of global warming is expected to enhance the competitiveness of technologically advanced Finnish companies in global trade. Finnvera will take an active role in financing Finnish technology exports to secure that the ambitious goal to limit global warming will be secured. Cleantech projects can benefit from export credits and guarantees with repayment periods up to 18 years.