Sustainable finance
Sector Understanding
Annexes to the OECD Export Credit Arrangement setting special financing terms for specific sectors — increasingly used to favour clean energy over fossil fuels.
Definition
Sector Understandings are annexes to the OECD Arrangement on Officially Supported Export Credits that set tailored financing rules for particular sectors — ships, aircraft, nuclear power, renewable energy and water projects, and (since 2011) coal-fired power plants. The Climate Change Sector Understanding, revised in 2023, offers more favourable terms for climate-friendly projects, while the coal rules now prohibit support for unabated coal-fired power.
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