Perspectives Climate Research utilized its methodology to assess EIFO, the official Export Credit Agency (ECA) of Denmark, for its alignment with the Paris Climate Agreement. Overall, EIFO was rated with ‘Transformational’ (score 2.54/3.00). EIFO is the first institution to receive the highest possible ranking among eleven ECAs that Perspectives Climate Research assessed so far. The score reflects EIFO’s successful phase-out of fossil energy financing and its world-leading renewable energy support. EIFO is also raising climate ambitions of other ECAs through initiatives like E3F and NZECA. Areas for improvement include reporting project-level GHG emissions, providing comprehensive sustainability reports, defining climate finance, and setting sectoral emissions reduction targets across its portfolio.
Authors
- DOI
- https://doi.org/10.6027/temanord2024-538
- ISBN
- 978-92-893-8073-7 (electronic) 978-92-893-8074-4 (electronic)
- OAI
- oai:DiVA.org:norden-13390
- Pages
- 59
- 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-13390
- Year
- 2024
- pages
- 59
Table of Contents
- 3 Acknowledge ments 2
- 4 Abbreviations 2
- 6 Vigtige budskaber 2
- 8 Vigtige anbefalinger til den danske regering 2
- 9 Key messages 2
- 11 Key recommen dations for the Danish govern ment 2
- 12 1. Introduction 2
- 17 2. Officially supported export finance in Denmark 2
- 3. Climate-related policies in officially supported Danish export finance 2
- 23 4. Assessment of EIFOs alignment with the Paris Agreement 2
- 47 5. Conclusions and recommen dations 2
- 49 References 2
- 58 About this publication 2
- Acknowledge ments 3
- Perspectives Climate Research 3
- Authors 3
- Acknowledgements 3
- Disclaimer 3
- Abbreviations 4
- Vigtige budskaber 6
- Vigtige anbefalinger til den danske regering 8
- Key messages 9
- Key recommen dations for the Danish govern ment 11
- 1. Introduction 12
- 2. Oficially supported export inance in Denmark 17
- 3. Climate-related policies in oficially supported Danish export inance 20
- 4. Assessment of EIFOs alignment with the Paris Agreement 23
- 4.1 Dimension 1 Financial and non-inancial disclosure and transparency 24
- Q1.1 To what extent can the GHG intensity of all activities supported by EIFO be assessed based on publicly available data Non-inancial disclosure 25
- Q1.2 In how far can the share of fossil fuel inance over total portfolio be assessed Financial disclosure 27
- Q1.3 In how far can the share of climate inance over total portfolio be assessed Financial disclosure 28
- 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 30
- 4.2 Dimension 2 Ambition of fossil fuel exclusion or restriction policies 30
- Q2.1 How ambitious is the ECA regarding exclusions or restrictions for support of coal and related value chains 31
- Q2.2 How ambitious is the ECA regarding exclusions or restrictions for support of oil and related value chains 31
- Q2.3 How ambitious is the ECA regarding exclusions or restrictions for support of gas and related value chains 31
- 4.3 Dimension 3 Climate impact of and emission reduction targets for all activities 32
- Q3.1 Can a declining trend in GHG intensity of the total portfolio be observed tCO eEUR scope 1-3 emissions 32
- Q3.2 How signiicant is the fossil fuel inancing relative to the total energy-related portfolio 34
- 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 36
- 4.4 Dimension 4 Climate inance Positive contribution to the global climate transition 36
- Q4.1 What is the reported share of climate inance over total portfolio 37
- Q4.2 How can the qualityappropriateness of climate inance earmarks be assessed 38
- 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 38
- Q4.4 To what extent does the pricing structure take into account climate impacts of activities 40
- Q4.5 In how far does the institution ensure sustainable development contributions from its activities 41
- 4.5 Dimension 5 Engagement - Outreach and pro- activeness of ECAs and their governments 43
- 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 45
- Q5.3 To what extent does the institution or its government actively engage with national companies to transform fossil fuel-related value chains and incentivise low GHG exports 45
- 5. Conclusions and recommen dations 47
- References 49
- About this publication 58
- Paris Alignment of Export Credit Agencies Denmark 58
- Disclaimer 58
- Rights and permissions 58
- Nordic co-operation 59
