Federal Export Credit Guarantees for Green Technologies

Transcription

1 Federal Export Credit Guarantees for Green Technologies Dr. Ingo Junker, Euler Hermes Kreditversicherungs-AG All rights reserved. Copyright 2008 Euler Hermes Kreditversicherungs-AG and PricewaterhouseCoopers AG WPG. Berlin, June 29, 2010

2 Foreign Trade and Investment Promotion Scheme of the Federal Republic of Germany Support of export and foreign investment activities of German businesses Political and commercial risks of export transactions / commercial loans (Export Credit Guarantees - ECG) Political risks of foreign direct investments (Investment Guarantees) ECA in Germany: Management by a mandated consortium Federal Ministry of Economics and Technology (lead) Euler Hermes Kreditversicherungs-AG PricewaterhouseCoopers AG WPG Statutory maximum exposure limit: EUR 120 bn page 2

3 ECG Annual Result 2009 New covered contract values in billions of EUR 19,8 7,6 20,6 7,6 17,0 6,7 20,7 7,5 22,4 7,2 12,1 12,2 13,0 10,3 13,2 15,2 7,5 2,5 5,0 4,5 7, May-09 May-10 Specific policies Wholeturnover/Rev. policies 2.8 % of total German export volume (+ 38 %) page 3

4 ECG Top Markets 2009 in millions of EUR 1. South Korea 2. United States 3. Russian Federation 4. Turkey 5. China, PR 6. Brazil 7. India 8. Dubai, UAE 9. Romania 10. Israel page 4

5 ECG Accumulated Result 2009 in billions of EUR result aggregated result page 5

6 ECG Benefits for German exporters Comprehensive risk insurance (enabling financing by banks) Worldwide and reliable cover 60 years of experience and know-how Focus on SME (70% of applications) page 6

7 ECG Risks covered Political Risks General Political Risks (legislative or administrative measures, war or other armed conflicts, revolution or civil commotion, nationalization, expropriation or other sovereign acts that are equivalent to an expropriation in their effects) Conversion and Transfer Risk (impossibility of converting or transferring amounts deposited in foreign currency; exchange rate losses on amounts duly deposited) Loss of right to receive payment due to frustration of contract for political reasons Loss of goods before the risk has passed to the foreign buyer due to political circumstances Commercial Risks Uncollectability of accounts for commercial reasons such as insolvency, settlements in or out of court, failed debt enforcement, etc. Protracted Default (non payment regardless of reason plus certain waiting period) page 7

8 How Hermes works Wide range of target markets, sectors, clients, business types Core product portfolio and standardized policies, rules and procedures But openness for every type of export transaction with individual risk assessment and, if required, case-bycase flexibility page 8

9 Good preconditions for supporting climate change mitigation / RE exports German ECA s offer is reliable Long-term funding can be offered in the framework of the OECD-Consensus flexible Export transactions are subjected to an individual assessment based on sound underwriting principles perpetual Risk appetite remains high as the motivation is to maintain trade relations page 9

10 OECD Arrangement on officially supported export credits ( OECD Consensus ) Ł Since 1978 Arrangement seeks to foster a level playing field among export credit agencies Ł Guidelines for maximum repayment terms, repayment profiles, down payment and support for local costs Ł Sector specific rules for aircraft, ships, conventional and nuclear power plants, renewable energies Ł Sector Understanding on renewable energies and water projects (Annex IV) page 10

11 Other OECD rules for officially supported export credits Ł OECD Recommendations Environment ("Common Approaches") Guidelines for environmental and social review of projects Revision 2010: Including climate change issues? Bribery Ł Sustainable Lending Policy (= only concessional credits for the poorest countries) page 11

12 Export credit guarantees for green technologies Renewables Portfolio is steadily growing Focus on wind and hydropower, only very small portion of biomass and solar energy Wind and hydropower exports constantly expanding to traditional ECA markets Solar projects mostly in EU and OECD countries, however some applications for manufacturing of solar cells in ECA target markets page 12

13 Export credit guarantees for renewable energy projects mio. EUR Annual reduction of more than 1,5 Mio t CO 2 in 2009 page 13

14 Export credit guarantees for renewable energy projects Examples (2009) Windpark Fantanelle, Romania (136 / 2.5 MW) Reduction of 1,09 Mio. t CO 2 Windpark Soma,Turkey (36 / 2.5 MW) Reduction of t CO 2 Windpark Binh Thuan, Vietnam (20 / 1.5 MW) Reduction of t CO 2 Hydropower plant Kindaruma, Kenia (rehab/enh) Reduction of t CO 2 page 14

15 Export credit guarantees for renewable energy projects Export credit guarantees for RE projects In general, use of standard cover products Eligible for more favorable conditions Annex IV OECD Consensus page 15

16 Forms of cover Wholeturnover and revolving cover Single transaction cover Supplementary forms of cover Wholeturnover Policy Wholeturnover Policy light Revolving supplier credit cover Revolving buyer credit cover Framework credit cover Supplier credit cover Supplier credit cover for service providers Buyer credit cover Manufacturing risk cover Credit confirmation risk cover Counter-guarantee Confiscation risk cover Leasing cover Securitisation Guarantee Contract bond cover Constructional works cover Airbus Guarantee Project financing Ship financing page 16

17 Forms of cover Wholeturnover and revolving cover Single transaction cover Supplementary forms of cover Wholeturnover Policy Wholeturnover Policy light Revolving supplier credit cover Revolving buyer credit cover Framework credit cover Supplier credit cover Supplier credit cover for service providers Buyer credit cover Manufacturing risk cover Credit confirmation risk cover Counter-guarantee Confiscation risk cover Leasing cover Securitisation Guarantee Contract bond cover Constructional works cover Airbus Guarantee Project financing Ship financing page 17

18 Special conditions in Annex IV OECD Consensus since 2005 Renewable energy projects Wind Geothermic Solar thermal Photovoltaic Hydro Bioenergy Infrastructure projects for the supply of drinking water and collection and treatment of waste water Modernization of the listed types of projects (energy efficiency) page 18

19 Revision of Annex IV OECD Consensus June 2009 ( step 1 ) Extended repayment terms up to 18 years credit period More flexible repayment profiles Grace period up to 18 months For currently included project types (RE) Limitation of SU lifted Ongoing discussions within OECD ( step 2 ) Development of a climate change sector understanding Designated technologies / project types Energy efficiency? Low to zero carbon emission? Local costs? page 19

20 Thank you for your attention! Dr. Ingo Junker Euler Hermes Kreditversicherungs-AG Tel.: / ingo.junker@exportkreditgarantien.com Further information is provided under: Hotline: +49 (0) 40/ info@exportkreditgarantien.de page 20