Dutch provinces to end fossil fuel export credit insurance from 1 January

AMSTERDAM (Reuters) – The Dutch government said on Thursday it intends to stop providing credit insurance to companies and banks for exports in the fossil fuel sector as of January 1, following pledges made at the COP26 climate change conference. did. in Glasgow.

In a statement announcing the move, the Treasury Department called it an “important step” and said the Cabinet is still in dialogue with other countries that have made the same promise “to ensure the most level playing field possible”. He said that

About 20 countries, including Germany, the United States, the United Kingdom and Canada, have made similar commitments, but so far only a few, including France, have implemented policies.

Like most developed countries, the Netherlands typically provides state Export Credit Insurance (ECI) for eligible exports when private insurance is inadequate, such as for large transactions or exports to developing countries. is given.

When the pledge was announced in 2021, the Cabinet knew that Dutch exporters would be at a competitive disadvantage over exporters from countries that still offer such insurance. said.

In 2021, the Dutch government has owed 7.3 billion euros in new ECI obligations, a finance ministry spokesman said. The ministry does not have data for the fossil fuel sector.

According to the Dutch Statistics Office (CBS), petroleum and petroleum products will account for 9.3% of Dutch exports in 2021, with a trade value of €54.7 billion.

The Ministry of Finance said the Netherlands could reconsider its policy if other countries do not honor their COP-26 commitments.

Dutch exporters apply for the state ECI through the private trade credit insurance company Atradius, part of Grupo Catala Occidente SA.(GCO. MC).

Reporting by Toby Sterling, Editing by Ed Osmond

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