Financing will be an essential issue in our collective efforts to gradually move from an economy run on fossil fuels towards a future based on new and greener business models. Today, the private markets are a long way from ready to handle this challenge alone, and policymakers can expect to have a central and active role to play for years to come.
Public export credits and trade insurance require a global framework of institutions, rules and regulations to avoid subsidies and a race to the bottom. The extensive modernisation of the Arrangement on Officially Supported Export Credits (Arrangement) of the Organisation for Economic Co‐operation and Development intends to re‐level the playing field. This Practitioner Commentary describes the demand for adequate government interventions, considers the need for the reform and discusses key aspects of the new Arrangement. We argue that there is a breakthrough in several important areas such as tenors, repayment terms and green finance. However, we also find that the modernisation falls short in areas such as the interplay between different rulebooks, pre‐shipment instruments' regulations and climate action.
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