The EU Council has adopted a position advocating for tighter restrictions on export credit support for fossil fuel projects, while pushing for a modernisation of the OECD Arrangement on Officially Supported Export Credits to enhance EU competitiveness. The move, outlined in a document published on 2 May 2026, aims to align EU export finance with its climate goals under the European Green Deal and the Global Gateway strategy.
Document details and context The document, an I/A item note prepared for the Council meeting on 10 February 2026, sets out the EU's stance on the OECD Arrangement and its Climate Change Sector Understanding (CCSU). It also references EU Regulation (EU) No 1233/2011, which governs the application of the OECD Arrangement within the EU. The Council's position is part of a broader effort to reform international export credit rules, which have been criticised for enabling continued investment in carbon-intensive industries.
Policy orientations and trade-offs The Council proposes a second phase of modernisation of the OECD Arrangement, focusing on increasing flexibility and transparency. A key element is the push to restrict export credit support for fossil fuel projects, which would mark a significant shift from current practices. This move balances environmental objectives against the need to maintain EU competitiveness in global markets. The trade-off involves potentially reducing support for traditional energy sectors while promoting green technologies, which could impact EU exporters in fossil fuel-related industries.
Impact on stakeholders - EU exporters in fossil fuel sectors: May face reduced access to export credits for projects involving oil, gas, and coal, potentially increasing costs and limiting market opportunities. - EU green technology exporters: Could benefit from enhanced support under the CCSU, gaining a competitive edge in renewable energy and low-carbon sectors. - EU regulatory bodies: Will need to update national export credit agencies' mandates to align with the new restrictions, requiring administrative adjustments. - Non-EU trading partners: May see changes in the availability of EU financing for energy projects, influencing their investment decisions and trade relations.
Expected institutional follow-up The Council's position will inform the EU's negotiations within the OECD to amend the Arrangement. The European Commission is expected to propose legislative changes to Regulation (EU) No 1233/2011 to implement the new rules. The European Parliament will also be consulted, potentially leading to further debate on the balance between climate action and economic competitiveness.
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