Note: The first paragraph was amended after publication to accurately reflect EDC’s alignment with the implementation guidelines.
Export Development Canada (EDC) remains on track to no longer provide new direct financing to international fossil fuel companies and international projects as of Jan. 1, 2023, in line with Canada’s commitment at COP26 last year.
Natural Resources Canada released today its guidelines for the Statement on International Public Support for the Clean Energy Transition (or Glasgow Statement), and EDC will ensure implementation in line with this new technical guidance.
“EDC remains steadfast in our support to Canadian companies in all sectors of the economy, helping our customers understand and mitigate ESG risks, seize opportunities and innovate to reduce their environmental impact,” said Justine Hendricks, Chief Corporate Sustainability Officer.
“We will continue working with the federal government to meet our climate goals while supporting Canadian exporters who provide innovative products, services and technologies to help international fossil fuel companies decarbonize.”
As part of the Government of Canada’s carbon reduction plans – and EDC’s own commitment to achieve net zero by 2050 – EDC has taken concrete steps in this direction. The organization phased down new direct financing to international fossil fuel companies from $2.7 billion in 2018 to $395 million as of July 2022.
Beyond reducing support for international fossil fuel companies, EDC decreased its overall business support for the oil and gas sector to $4.4 billion in 2021 from $12.5 billion in 2018. More broadly, during that time, EDC reduced exposure to the most carbon-intensive sectors in its portfolio by more than 40%, increased support for cleantech to $6.3 billion from $2 billion, and added sustainable financing products to its offerings.
EDC’s exposure – existing, committed business that has not yet reached maturity – falling under the scope of the Glasgow Statement is approximately $2.5 billion. This business will not be renewed as maturity dates are reached.
EDC will continue to work in lockstep with our Government of Canada partners and provide updates on implementation of the Glasgow Statement in our integrated annual reports and our climate-related disclosures, with the next publication scheduled for spring 2023.
