There are many challenges to foster green and energy transition in emerging and developing countries, and the roles for export credit agencies (ECAs) range over from updating the underwriting policy or way of business, to developing a new program. The COVID-19 pandemic and the Russian War against Ukraine heightened political risks of global infrastructure development, including renewable energy in those countries. ECAs are expected to offer a risk mitigation or management tool, such as investment insurance, to enhance the investability of the project. The pathways to carbon neutrality in different countries are varied. Therefore, it would be necessary for ECAs to underwrite a transaction based on regional and country-specific circumstances while confirming alignment with the Paris Agreement by each project. Furthermore, it is also critical for ECAs, particularly through insurance or guarantee programs to play their roles as catalysts to mobilize private capital to fill the funding gap of energy transition. The key would be for ECAs to be more innovative for all aspects of their own business model to realize the challenges.
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