In support of efforts to address climate change, the OECD Participants have agreed to end support for unabated coal-fired power plants.
Support to address climate change
The Participants to the OECD Arrangement on Officially Supported Export Credits agreed to stop support for unabated coal-fired power plants in order to contribute towards combating climate change.
Specifically, the ban will apply to officially supported export credits with a repayment term of at least two years and tied aid for:
- new coal‑fired power plants or parts and services required for their construction and
- the addition of new coal-fired electricity generation units to existing power plants
- the supply of equipment to existing coal-fired power plants, unless
the purpose of the equipment supplied is air pollution, water pollution abatement or CO2 emissions abatement and
- such equipment does not extend the useful lifetime or capacity of the plant.
Power plants that are or will be equipped with effective carbon capture, utilisation and storage (CCUS) technology are excluded from the ban.
The ban will come into effect once Participants complete their formal internal decision making processes, which are expected by the end of October 2021
As the official Export Credit Agency (ECA) of Austria, OeKB acts in accordance with national and international laws and regulations. One of the most important international regulations is the OECD Arrangement on Officially Supported Export Credits. It applies to officially supported export credits with a maturity of at least two years and regulates important areas such as maximum repayment terms, repayment profiles or local costs. The Participants are Australia, Canada, the European Union, Japan, Korea, New Zealand, Norway, Switzerland, Turkey, UK and the USA.