Perspectives Climate Research utilized its well-established methodology to assess Finnvera Oyj, the official Export Credit Agency (ECA) of Finland, for its alignment with the Paris Climate Agreement. Overall, Finnvera was rated with ‘Paris aligned’ with a score of 2.20/3.00. The main reasons for the score include the successful phase-out of most fossil fuel energy financing over the past years with virtually 100% of energy-related transactions flowing to renewable energy (RE), though its absolute volume has been increasing only slowly. Finnvera could not score ‘Transformational’ due to shortcomings regarding financial and non-financial disclosures, the untapped potential for more national engagement to decarbonize Finland’s exports, and the absence of granular reporting on project-level greenhouse gas emissions data as well as a clear definition of climate finance and its earmarks.
Authors
- DOI
- https://doi.org/10.6027/temanord2024-537
- ISBN
- : 978-92-893-8041-6 (electronic) : 978-92-893-8042-3 (electronic)
- OAI
- oai:DiVA.org:norden-13271
- Pages
- 58
- Published in
- Copenhagen: Nordisk Ministerråd
- Responsible organisation
- Nordic Council of Ministers, Nordic Council of Ministers Secretariat Nordic Council of Ministers, Nordic Council of Ministers Secretariat, Nordisk Arbejdsgruppe for Klima og Luft (NKL)
- URN
- : urn:nbn:se:norden:org:diva-13271
- Year
- 2024
- pages
- 58
Table of Contents
- 3 Acknowledge ments 2
- 4 Abbreviations 2
- 6 Keskeiset viestit 2
- 8 Keskeiset suositukset Suomen hallitukselle 2
- 9 Key messages 2
- 11 Key recommen dations for the Finnish govern ment 2
- 12 1. Introduction 2
- 17 2. Officially supported export finance in Finland 2
- 3. Climate-related policies in officially supported Finnish export finance 2
- 21 4. Assessment of Finnveras alignment with the Paris Agreement 2
- 45 5. Conclusions and recommendations 2
- 48 References 2
- 57 About this publication 2
- Acknowledge ments 3
- Perspectives Climate Research 3
- Authors 3
- Acknowledgements 3
- Disclaimer 3
- Abbreviations 4
- Keskeiset viestit 6
- Keskeiset suositukset Suomen hallitukselle 8
- Key messages 9
- Key recommen dations for the Finnish govern ment 11
- 1. Introduction 12
- 2. Oficially supported export inance in Finland 17
- 3. Climate-related policies in oficially supported Finnish export inance 19
- 4. Assessment of Finnveras alignment with the Paris Agreement 21
- 4.1 Dimension 1 Financial and non-inancial disclosure and transparency 22
- Q1.1 To what extent can the GHG intensity of all activities supported by the ECA be assessed based on publicly available data Non- inancial disclosure 23
- Q1.2 In how far can the share of fossil fuel inance over total portfolio be assessed Financial disclosure 24
- Q1.3 In how far can the share of climate inance over total portfolio be assessed Financial disclosure 24
- Q1.4 To what extent does the institution adhere to the Recommendations and Supporting Recommended Disclosures of the Task Force on Climate-related Financial Disclosure TCFD 25
- 4.2 Dimension 2 Ambition of fossil fuel exclusion or restriction policies 25
- Q2.1 How ambitious is the ECA regarding exclusions or restrictions for support of coal and related value chains 26
- Q2.2 How ambitious is the ECA regarding exclusions or restrictions for support of oil and related value chains 27
- Q2.3 How ambitious is the ECA regarding exclusions or restrictions for support of gas and related value chains 27
- 4.3 Dimension 3 Climate impact of and emission reduction targets for all activities 27
- Q3.1 Can a declining trend in GHG intensity of the total portfolio be observed tCO eEUR scope 1-3 emissions 28
- Q3.2 How signiicant is the fossil fuel inancing relative to total energy-related portfolio average of new commitments from the last three years where data is available 30
- Q3.3 To what extent do all emission-relevant sectors have targeted GHG reduction targets and in how far are GHG reduction targets in line with benchmarks of acceptable 1.5 C pathways 31
- 4.4 Dimension 4 Climate inance Positive contribution to the global climate transition 33
- Q4.1 What is the reported share of climate inance over total portfolio 34
- Q4.2 How can the qualityappropriateness of climate inance earmarks be assessed 35
- Q4.3 What is the share of renewable energy inancing over total energy- related inancing average of new commitments from the last three years where data is available 35
- Q4.4 To what extent does the pricing structure take into account climate impacts of activities 36
- Q4.5 In how far does the institution ensure sustainable development contributions from its activities 39
- 4.5 Dimension 5 Engagement Outreach and pro- activeness of ECAs and their governments 41
- Q5.2 To what extent does the institution itself or its government actively engage in relevant national fora with view to implementing ambitious climate policies in the export inance system 43
- Q5.3 To what extent does the institution or its government actively engage with national companies to transform fossil fuel-related value chains and incentivize low GHG exports 44
- 5. Conclusions and recommendations 45
- References 48
- About this publication 57
- Paris Alignment of Export Credit Agencies Finland 57
- Disclaimer 57
- Rights and permissions 57
- Nordic co-operation 58
