Ex-Im Bank and the Environment

Ex-Im Bank began to officially address the potential environmental effects of projects it financed in 1992 in response to a Congressional mandate.  In 1995, Ex-Im Bank became the first official Export Credit Agency (ECA) to adopt a set of Environmental Procedures and Guidelines (EPG).  Over the following years, Ex-Im has worked with stakeholders to ensure that the EPG is implemented in a way that balances the environmental stewardship that Congress sought with Ex-Im’s mission of fostering U.S. exports.  In addition, Ex-Im Bank operates in compliance with the OECD “Common Approaches on the Environment” establishing an environmental review framework that is shared among all of the OECD ECAs.

In 2009, Ex-Im Bank became the first ECA to adopt a Carbon Policy to address the climate change issues raised by the Bank’s export financing activities while remaining flexible and responsive to the needs of U.S. exporters.

In March 2011 Ex-Im joined more than 70 financial institutions and ECAs in adopting the Equator Principles, a globally recognized benchmark for financial institutions to determine, assess and manage the social and environmental risks of international project financing. See below for Ex-Im Bank's Equator Principles reporting.

In furtherance of our environmental mandate, Ex-Im Bank invites U.S. exporters and other stakeholders to contact us with their views and ideas.

Transparency and Reporting of Greenhouse Gas Emissions

In 1999, Ex-Im Bank became the first ECA to report greenhouse gas emissions, expressed as carbon dioxide or equivalent (CO₂), associated with projects receiving its financing support.  Since that time, the Bank has worked consistently to encourage multilateral development banks, export credit agencies and other international lending institutions to calculate and report publically the CO₂ emissions associated with the projects they finance.

Currently, Ex-Im Bank reports CO₂ emission data for Category A and B projects on the Ex-Im Bank website and in its annual report. The Bank reports CO₂ emissions associated with fossil fuel projects in the following categories:

• Oil and gas exploration projects
• Refineries
• Power plants
• Oil and gas production projects
• Liquefied natural gas (LNG) plants
• Pipeline projects.

The Bank also tracks and reports CO₂ in other categories of transactions where the project’s production exceeds more than 50,000 tons of CO₂ per year.

In accordance with the Carbon Policy, Ex-Im Bank will continue to explore ways in which it may improve its own transparency and reporting efforts as well as enhance its advocacy on the topic of for transparency and reporting with export credit agencies and other lenders.

Ex-Im Bank's Equator Principles Implementation and Reporting

Ex-Im Bank implements the Equator Principles through the Bank's Environmental Procedures and Guidelines, covering the processes for screening, categorization, guidelines, and environmental and social impacts review of all Ex-Im Bank transactions, including project financings. Appropriate environmental and social covenants are included in the financing documents to ensure compliance with the Equator Principles and Ex-Im Bank's own environmental standards, with project monitoring by Ex-Im Bank's Engineering & Environment and Portfolio Management Divisions.

March 30 to December 31, 2011 Data -- Project Finance Transaction Screening:

RELATED LINKS

IFC Environmental Performance Standards on Social and Environmental Sustainability

World Bank Environmental Safeguard Policies

IFC Environmental, Health and Safety Guidelines

International Forum:

• OECD "Common Approaches on the Environment"
• Equator Principles

Contact an Ex-Im Environmental Specialist