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The Federal Government is committed to protect the climate and supports numerous initiatives to that end all over the world. This includes the foreign trade promotion instruments (see for example, the Sector Understanding on Renewable Energy and Water Projects). In November 2015, the OECD member states agreed that new coal-fired power stations should only be supported with export credit guarantees (PDF, 165 KB) if strict criteria and requirements are met. For this reason, only projects, which use the most efficient, state-of-the-art technology that causes as little damage as possible to the climate, may be supported as of 01.01.2017.

Moreover, the four ministries represented on the IMC agreed to restrict cover facilities under single transaction cover for certain climate-damaging projects.

In practical terms, this means that, with immediate effect, export credit cover from the Federal Government is now longer available for direct supplies and services for the construction of new or the expansion of existing coal-fired power stations. Nonetheless, exports for the purpose of modernising existing power stations (e.g. flue gas desulphurisation plants, filters) may still be supported with Hermes Cover provided that the modernisation does not involve a capacity expansion and that the transaction is otherwise eligible for support and the risk involved is justified.

Information and guidelines for the energy industry

Nuclear sector

On 4 June 2014, the Federal Government decided in the Interministerial Committee (IMC) that, as a matter of principle, it will no longer assume any export credit guarantees for supplies and services destined for nuclear facilities abroad. This exclusion from cover applies to both new and existing plants.

The general exclusion from cover does not apply to supplies and services which help to improve the safety of existing plants or to dismantle them. Moreover, supplies and services for nuclear facilities that serve other purposes than commercial energy generation (e.g. nuclear medicine equipment) continue to be possible.

For more detailed information

Coal

Apart from the existing international rules of the OECD for the granting of export credit guarantees in the coal sector, the IMC decided in July 2020 to restrict cover facilities under single transaction cover for certain transactions even further as part of the climate strategy for the export credit guarantees.

In practice this means that, with immediate effect, direct supplies and services for the construction of new or the expansion of existing coal-fired power stations will no longer be covered with an export credit guarantee from the Federal Government.

 

Crude oil

Together with the restrictions on cover for coal-fired power stations, the IMC also decided in July 2020 to exclude supplies/services for oil extraction projects which involve routine venting and flaring from cover.

 

For more detailed information see AGA-Report 312 (in German):

Development of the energy industry  

The charts below show the development of Hermes Cover (single transaction cover) for the energy industry.

  • The results are based on a delimitation of sectors, which is specifically designed for the export credit guarantees. A comparison with the standard classification of economic activities (e.g. NACE classification) is not possible due to conceptual differences.
  • The figures may contain minor rounding differences.

Energy industry*

Single Transaction policies by Energy sources 2020 in million eur

Image with the development of Single Transaction Cover according to Energy sources

*power generation

Energy industry:

In 2020, the volume of cover for the energy industry (power generation) amounted to about 1.1 billion euros. Cover was granted almost exclusively for renewable energy projects. The gas sector accounted for about 33 million euros.

Renewable energies

Single Transaction policies by Energy sources  in million eur

Development of Hermes Cover according to renewable energies

Renewable energies: 

In 2020, the volume of cover for renewable energies increased by 4% over the previous year to about 1.1 billion euros. The biggest share of the cover was for the wind power sector, which, as in past years, was the focal point in the renewable energies sector.