Greening trade finance: an examination of the role and impact of export credit agencies on clean energy deals

Thesis

Export credit agencies (ECAs) are pivotal yet understudied actors in the clean energy transition. This dissertation utilizes mixed-method analysis to determine whether and how ECAs facilitate clean energy, examining their role in energy financing, their association with de-risking, and possible convergence with development finance institutions (DFIs). Using linear and logistic regressions, this dissertation finds that ECA participation de-risks deals, with credit spreads 88 to 175 bps lower than purely private models, yet ECAs are less likely than DFIs to support clean energy, with clean energy projects decreasing odds of ECA involvement by 74% to 53%. Stakeholder interviews support these findings, with practitioners viewing ECAs as crucial risk mitigators with growing environmental mandates but noting the fossil-oriented organization of ECAs and complementary institutional differences from DFIs. This dissertation concludes with recommendations to increase ECA facilitation of clean energy, inclusive of increased origination strategies, an OECD fossil-finance ban, and ECA–DFI collaboration templates.

Authors: Gonsalves Wetherell, S

• DOI: 10.5287/ora-ngjekaj84
• Type of award: MSc taught course
• Level of award: Masters
• Awarding institution: University of Oxford
• Language: English
• Keywords: sustainability; trade finance; development finance initiatives; export credit agencies
• Subjects: Sustainable development; International trade; Clean energy