The Dutch government said on Thursday that it intended to stop offering companies and banks credit insurance for exports in the fossil fuel sector from January 1, in line with a commitment made during the COP-26 climate conference in Glasgow.
In a statement announcing the move, the finance ministry called it an “important step” and noted that the cabinet is still in dialogue with other countries that have made the same commitment “to ensure as much as possible fair conditions of competition”.
About 20 countries, including Germany, the United States, Great Britain and Canada, have made similar commitments, but only a few, including France, have so far implemented them in their Politics.
Like most industrialized countries, the Netherlands grants state export credit insurance (ECI) on eligible exports when private insurance is insufficient, usually on large transactions or exports to developing countries. development.
When the undertaking was announced in 2021, Cabinet said it had done so knowing it would put Dutch exporters at a competitive disadvantage to exporters in countries that still offer such assurance.
In 2021, the Dutch state took on €7.3 billion in new ECI obligations, a finance ministry spokesperson said. The ministry does not have data for the fossil fuel sector.
According to Statistics Netherlands (CBS), petroleum and petroleum products accounted for 9.3% of Dutch exports in 2021, with a trade value of €54.7 billion.
The finance ministry said the Netherlands may reconsider the policy if other countries fail to meet their commitments at COP-26.
Dutch exporters apply for an ECI from the state through the private trade credit insurer Atradius, part of Grupo Catala Occidente.
(Reporting by Toby Sterling, editing by Ed Osmond)
Photograph: Climate activists lie after painting ‘Stop funding fossil fuels’ in the square in front of the euro sign in Frankfurt, during the ‘Fridays for Future’ event, October 29, 2021. Photo credit : AP Photo/Michael Probst, File .
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