· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on UNEP FI blog or enjoy below:
🗞️ Driving the news: At COP29, the UN-convened Net-Zero Export Credit Agencies Alliance (NZECA) launched its first Target-Setting Protocol, providing a framework for public finance institutions to set and disclose decarbonization goals
• Finland's Finnvera joined the alliance, increasing its membership to nine
🔭 The context: Formed in 2023, the NZECA unites export credit agencies and export-import banks to align trade financing with net-zero goals
• The Protocol guides members in setting science-based targets and ending new financing for unabated fossil fuels, accelerating the Alliance's net-zero ambitions
🌍 Why it matters for the planet: By directing financing towards sustainable sectors, NZECA members can significantly impact the global carbon footprint, supporting green transitions in trade-heavy industries that rely on substantial funding
⏭️ What's next: Member institutions will use the Protocol to independently set and report on their decarbonization progress annually, with ongoing updates to the framework as climate standards evolve
💬 One quote: “ECAs and ExIm banks are essential to climate action... they can direct funds towards sustainable infrastructure, energy, and industrial projects," – Eric Usher, UNEP Finance Initiative Head
📈 One stat: NZECA members supported an estimated $120 billion in global trade in 2022
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