OECD reached agreement on officially supported export credits on coal-fired power plants

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

“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 new agreement, or rather, the new climate sector understanding under the  Arrangement on Officially Supported Export Credits, 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.

The private sector is expected to follow suit with the now agreed public sector agreement, which will mean leveraging the emission cuts in the future.

“The new agreement is not seen to hinder the Finnish export industries, on the contrary it is more likely to improve the competitive position of the Finnish high technology coal power plant solutions”, says Pekka Karkovirta.

The new Climate Sector understanding will be set in force on and as from 1st January 2017.

The Participants to the Arrangement on Officially Supported Export Credits are: Australia, Canada, the European Union, Korea, Japan, New Zealand, Norway, the United States and Switzerland.

For further information, please contact:

Pekka Karkovirta, Vice President, International Relations, tel. +358 (0)29 460 2768

In OECD website: http://www.oecd.org/newsroom/statement-from-participants-to-the-arrangement-on-officially-supported-export-credits.htm