Perspectives Climate Research developed a tailor-made methodology to assess and compare export credit agencies (ECAs) and their governments regarding alignment with the Paris Agreement. In this case study, this assessment methodology was applied to the Canadian ECA Export Development Canada (EDC). As a result of the assessment, EDC was rated as ‘Unaligned‘ with the Paris Agreement, at the upper threshold to ‘Some progress’.

Moreover, the study discusses key topics of high political currency in Canada, including the question whether EDC’s support for fossil fuel value chains can de facto be considered a ‘subsidy’ under its national mandate as well as in the context of international law under the World Trade Organization (WTO), what the relationship between national Net Zero targets and global 1.5 degree consistency is, and which implications this has for EDC’s portfolio and strategic orientation.

The study provides specific recommendations for the new Canadian cabinet under Prime Minister Justin Trudeau as well as for EDC itself on how to align the ECA’s portfolio with the objectives of the Paris Agreement.

The work on Canada is part of a series of assessments of major G20 country ECAs, and previous assessments were carried out on ECAs of Germany (Euler Hermes), the Netherlands (Atradius DSB), Japan (NEXI and JBIC) and Perspectives Climate Research is currently working on further case studies including the UK (UKEF).