Born out of the concern that financial institutions were not adequately accounting for their exposure to climate-related risks, TCFD has targeted industry-wide adoption, however many in the export finance sector remain ambivalent. So, where does TCFD stand, and what needs to be done to overcome industry inertia?

The EU is currently considering a financial framework for European multilateral and bilateral development banks – under the EFAD umbrella. But, as Paul Mudde, consultant at Sustainable Finance & Insurance outlines here, these discussions have so far ignored reports made to the G20 and unregulated official financial competition, particularly from China.

TXF’s 2021 Global Export Finance Industry Report has revealed a series of trends in the export finance industry, largely centered around the drive towards sustainability, and the adaptation of ECA and bank products to suit a growing need for flexibility that has come to light since the start of the pandemic.

Changes to the rules on local content within ECA-backed export financing is just one of the elements of the OECD Arrangement that many have been asking for. Now an increase in the local content percentage rule looks set to give the export finance community a fillip it has been seeking for a long time.

The 2020 edition of TXF Intelligence’s Sustainability in Export Finance report aims to classify and measure closed sustainable export finance deals from last year while garnering market sentiment in a bid to shine a spotlight on the integral role ECAs will play in accelerating the energy transition.