THE OECD countries have agreed to new rules to strengthen current environmental and social due diligence processes when providing export credits and to create financially prudent incentives to support business projects with low CO2 emissions. The second agreement also aims to encourage support for advanced climate-friendly technologies such as carbon capture and storage.

The first agreement is an OECD Recommendation that broadens and enhances the provisions for addressing environmental and social issues relating to the export of capital goods and services qualifying for official export credits.

The new Recommendation provides clarity to existing disciplines and aims to promote international coherence. It reflects recent developments in the fields of environmental, social and governance due diligence, such as measuring greenhouse gas emissions and addressing project-related human rights impacts, in reviews of environmentally and socially sensitive projects.

The agreement results from extensive negotiations by the Working Party on Export Credits and Credit Guarantees (ECG) and consultations with relevant stakeholders, such as non‑governmental organisations, business and banking groups, labour unions, and other international organisations. The UN Secretary‑General’s Special Representative on business and human rights, Prof. John Ruggie, also provided input.

The second agreement, which has been approved by the participant countries to the Arrangement on Officially Supported Export Credits, creates a framework and incentives for the financing of large, capital intensive projects in sectors that help mitigate climate change, including renewable energies and water projects.