Making it Happen: Renewable Energy Finance and Role of Export Credit Agencies.
With a mandate to facilitate exports from their respective countries, Export Credit Agencies (ECA) can play an important role for sustainable development ñ through, for example, supporting exports of renewable energy products that help provide access to clean energy services in developing countries.
So far, only a very small portion of ECA business goes into renewable energy projects and the sales of renewable energy technology (equipment and services). This is due to different barriers, some sector specific and others more general in nature: the technology is still rather young, many potential exporters are SMEs less focused on exports to non-OECD countries, often project size is small making for relatively high transaction costs, lack of level-playing field with conventional energy technologies and projects, political and commercial risk in the buyer country. In addition, certain provisions in the OECD Arrangement on Officially Supported Export Credit - under which ECAs operate - seem to pose barriers to financing renewable energy projects.
This document looks at if and how ECAs or their guardian authorities can help break down these barriers, either directly by tailoring products to renewable energy project specificities or by making appropriate changes to the Arrangement.
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