15: Responsibility abroad. How export credit agencies have an impact on biodiversity

This briefing note will demonstrate the impact of export credit agencies on biodiversity and especially forests. Export Credit Agencies (ECAs) are the largest source of taxpayer's money financing projects in the South and the East. During the 1990s, ECA financing averaged $80-$100 billion or more per annum -- roughly twice the level of the world's total official development assistance. ECAs are involved in many destructive projects, from oil palm plantations to mines and large dams. They contribute directly and indirectly to biodiversity loss. The Convention on Biological Diversity (CBD) has been in existence for nearly ten years. Its objectives are the conservation of biological diversity, the sustainable use of biological resources, and the fair and equitable sharing of the benefits arising from the utilization of genetic resources. It provides a comprehensive approach to the conservation and sustainable use of biodiversity. As a legally binding inter-governmental instrument, CBD articles and decisions are considered as 'soft law'.

After describing what ECAs are and the most relevant legally binding requirements for biodiversity protection under the CBD, this briefing note details the relationship between ECAs and biodiversity through a couple case studies. It will argue that the EU member states should not limit their activities to ensure the integration of biodiversity conservation and sustainable use into economic development at national level but also address the issue of the EU's footprint on biodiversity in South through the trade and investment of European based companies. Developing binding social and environmental guidelines - in line with the commitments made by the parties to the CBD - for companies and the financial sector, including ECAs, is needed for the EU to move forward.