A new environmental policy for Finnvera’s Export Credit Guarantee activities

Finnvera plc adopted a new environmental policy for its export credit guarantee activities on 19 May 2004. The policy is based on the new environmental recommendation approved by the OECD Council on 18 December 2003. This recommendation replaces the common approaches on environment that had been negotiated within the OECD and that Finnvera, together with many other export credit agencies, had used previously.

Applications for export credit guarantees having a repayment period of two years or more are screened for environmental classification. On the basis of the potential environmental impacts of the capital goods exports and investment projects underlying the guarantee applications, the applications are placed in environmental categories A, B or C. Projects in category A may have significant environmental impacts, and projects in category B may have moderate environmental impacts. Projects in category C have no potential environmental impacts or these impacts are minimal. Finnvera’s environmental review depends on the project category. Before Finnvera reaches a decision about a project in category A or B, a separate review of its environmental impacts must be made.

The main changes in Finnvera’s environmental policy are:

• A precondition for granting a guarantee for projects in category A is that the environmental impact information pertaining to the project is made publicly available 30 days before Finnvera signs a guarantee agreement.

• An environmental impact assessment (EIA) is required for projects in category A.

• The environmental impacts of projects in categories A and B are benchmarked against the host country standards and against a relevant international environmental standard, such as the technical standards of the World Bank Group. The project must meet the environmental standards of the host country. If the international environmental standard used is more stringent than the host country legislation, the project must also meet the requirements of the international standard.

• The environmental impacts to be assessed also include the following social aspects: involuntary resettlement, the status of indigenous peoples, and the management of cultural property.

The new environmental policy is applied to guarantee applications received by Finnvera after 19 May 2004. The next OECD review of the environmental recommendation will be made by the end of 2006. Finnvera follows developments within the OECD, and plays an active role in negotiations between export credit agencies on common approaches in environmental issues.

Finnvera’s subsidiaries – Finnish Export Credit Ltd and Fide Ltd – also adhere to the same environmental policy.

For further information:

Topi Vesteri, Director, tel. +358 20 460 7238
Vesa Oksanen, Environmental Adviser, tel. +358 20 460 7348
Virve Tulenheimo, Environmental Adviser, tel. +358 20 460 7367