Export Finance and Sustainable Development: Do Export Credit Subsidy Rules Require Revision?
Article from: OGEL 2 (2005), in Renewable Energy
Beginning in the 1970s, member countries of the Organization for Economic Cooperation and Development (OECD) established international rules designed to curtail trade distortions caused by the subsidization of official export credits and the abuse of foreign aid. From an environmental standpoint the consequences are mixed. On one hand, the rules constrain the ability of countries to offer soft financing terms for renewable technologies and other exports that may improve environmental conditions. However, the rules also have had important benefits. By forcing buyers to face the ...