Reel: Berne Union - UN acknowledges role of ECAs in mobilising capital for sustainable development at FFD4 - Trade Treasury Payments

Official export credit agencies (ECAs) have been formally recognised by the United Nations as key actors in mobilising private capital to advance the Sustainable Development Goals, following their inclusion in the outcome document of the Fourth International Conference on Financing for Development (FFD4), known as the Compromiso de Sevilla.

The document marks the first formal UN recognition of ECAs’ role in sustainable finance, crowding in private sector lenders, and mitigating risk in markets where access to affordable capital remains limited.

As institutional mechanisms that can de-risk transactions and reduce financing costs, ECAs are increasingly viewed as critical components of blended finance strategies, particularly in support of climate-aligned infrastructure and development initiatives.

The Berne Union, the global association of export credit and investment insurers, participated in FFD4 as co-organiser of a dedicated side event on de-risking mechanisms for sustainable development. The Union also released a new report during the conference, outlining the development impact of export credit and investment insurance.

Paul Heaney, Secretary General, Berne Union, said, “We recognize the role of official export credit agencies in providing export credit insurance, untied guarantee activities, and working capital financing.” It further calls for: “greater cooperation and alignment between export credit agencies, multilateral development banks and other financial actors to enhance the efficiency and impact of public capital, particularly in the light of increasing financial constraints.”

A recent report from the Berne Union report showed that members supported USD 140 bn of long-term capital into developing countries in 2024. 

Since 2019, members have made USD 52bn in new commitments towards public infrastructure and USD30.9 bn for renewable energy projects in developing countries. They have more than USD 500 bn outstanding exposure in developing countries, including USD 97.8 bn across 42/44 LDCs. 

FFD4 has also marked a shift in emphasis towards private sector engagement, illustrated by the parallel ‘International Business Forum’. In this context, the outcome statement and accompanying Platform for Action, call for strengthening the use of risk-sharing and blended finance instruments including guarantees and insurance for investment in developing countries. Along with partners at UN Trade and Development (UNCTAD) and the International Chamber of Commerce (ICC), the Berne Union co-hosted a side event on 1st July focused on ‘Enhancing de-risking mechanisms for sustainable development’. 

The panels drew upon findings from a recent UNCTAD report on the role of political risk insurance (PRI) in de-risking FDI, and attracted senior representatives trade and development finance spheres, discussing how credit guarantees and PRI can help de- risk and mobilise private finance towards SDGs, the role of different partners structuring and sharing risk how this feeds into wider strategic policy at national and international level.

Separately, the conference also saw the formal launch of the Trade Finance ‘Conference of Parties’ (TF COP), led by the International Trade and Forfaiting Association (ITFA). 

Watch the reel on YouTube here.