Dutch state to end export credit insurance for fossil fuel from Jan. 1

AMSTERDAM, Nov 3 (Reuters) – The Dutch government said on Thursday it intended to stop giving companies and banks credit insurance for exports in the fossil fuel sector on Jan. 1, following a pledge made during the COP-26 -climate conference was made. in Glasgow.

In a statement announcing the move, the Ministry of Finance called it an “important step” and noted that the Cabinet was still in discussions with other countries that had made the same commitment “to level the playing field as much as possible guarantee”.

Around 20 countries including Germany, the United States, Britain and Canada have made similar commitments, but only a few including France have so far implemented them into policy.

Like most industrialized countries, the Netherlands provides government export credit insurance (ECI) on eligible exports when private insurance is insufficient, usually on large transactions or exports to developing countries.

When the pledge was announced in 2021, the Cabinet said it did so knowing that it would put Dutch exporters at a competitive disadvantage to exporters in countries that still offer such assurances.

In 2021, the Dutch state has taken on 7.3 billion euros worth of new CPI obligations, a finance ministry spokesman 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 euros.

The Ministry of Finance said that the Netherlands could reconsider the policy if other countries do not fulfill their COP-26 pledges.

Dutch exporters apply for state CPI via private trade credit insurer Atradius, part of Grupo Catala Occidente SA(GCO.MC).

Reporting by Toby Sterling, editing by Ed Osmond

Our Standards: The Thomson Reuters Trust Principles.

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