Statistics on Ex-Im Bank Project Greenhouse Gas Emissions, Fossil Fuel Financing and Renewable Energy Financing Compiled by Pacific Environment (June 16/2009) Ex-Im Bank fossil fuel emissions trend: The graph below charts Ex-Im Bank’s estimate of direct greenhouse gas emissions from fossil fuel-related projects that it finances (fossil fuel power plants, oil-field and gas-field exploration, development and production projects) from FY 2003 - FY2009. FY 2003 = 10 million Tonnes/yr of CO2 FY 2004 = 10.8 million Tonnes/yr of CO2 FY 2005 = 8.4 million Tonnes/yr of CO2 FY 2006 = 5.6 million Tonnes/yr of CO2 FY 2007 = 12.0 million Tonnes/yr of CO2 FY 2008 = 5.1 million Tonnes/yr of CO2 FY 2009 = 17.9 million Tonnes/yr of CO2 20 15 Millon tons/yr CO2
10 5 0 FY FY FY FY FY FY FY 2003 2004 2005 2006 2007 2008 2009
(Source: Ex-Im Bank Annual Reports, available at http://www.exim.gov/about/reports/ar/index.cfm These figures indicate a steep increase in Ex-Im Bank financed project emissions in FY 2007 and FY 2009. The reduction in FY 2008 is understood to be because of projects cancelled and restructured due to the international financial crisis. Meanwhile, these figures do not include estimates of indirect emissions associated with these transactions, for example, downstream transport and combustion of fossil fuel originating from oil-field and gas-field exploration, development, production and transport projects. Also, these figures do not include fossil-fuel emissions from projects that benefit from Ex-Im Bank-financed services in the oil and gas sector, such as oil and gas drilling, training and consulting. And, these figures do not include emissions from other carbon-intensive sectors, such as aviation, which represent a large percentage of Ex-Im Bank transactions, Thus, total Ex-Im Bank financed direct and indirect emissions are far larger than these figures indicate.
The graph below indicates Ex-Im Bank’s estimated fossil fuel project emissions trends through FY 2010, assuming Ex-Im Bank finances the Sasan coal power plant in India and the Kusile coal power plant in South Africa. This graph includes estimated emissions from the Papua New Guinea Liquid Natural Gas (PNG LNG) project, which Ex-Im Bank approved in December, 2009. This graph does not include additional fossil fuel projects which Ex-Im Bank may also approve in FY 2010 PNG LNG = 3.1 million Tonnes/yr of CO2 Sasan Coal Power Plant and Mine = 26.4 million Tonnes/yr of CO2 Kusile Coal Power Plant = 30.5 million Tonnes/yr of CO2 Additional projects approved in FY 2010 = Unknown Total = > 60 million Tonnes/yr of CO2
20 09 FY
20 07 FY
20 05
Millon tonns/yr CO2
FY
FY
20 03
70 60 50 40 30 20 10 0
Ex-Im Bank fossil fuel / renewable energy financing trend: The following charts Ex-Im Bank’s financing for fossil fuel projects and renewable energy transactions between FY 2005 and FY 2009. FY 2005 renewable energy financing = US $16.8 million FY 2005 fossil fuel financing = US $1,589 million FY 2006 renewable energy financing = US $9.8 million FY 2006 fossil fuel financing = US $1,865 million FY 2007 renewable energy financing = US $2.6 million FY 2007 fossil fuel financing = US $1,500 million FY 2008 renewable energy financing = US $30.4 million FY 2008 fossil fuel financing = US $1,600 million FY 2009 renewable energy financing = US $101 million FY 2009 fossil fuel financing = US $2,560 million
3000 2500 Financing for Renewable Energy (US$ millions) Financing for Fossil Fuel Projects (US$ millions)
2000 1500 1000 500 0 2005 2006 2007 2008 2009
(Source: http://www.exim.gov/about/reports/ar/index.cfm) These figures indicate that financing for renewable energy transactions is increasing compared to previous years, yet remains a tiny fraction (3.9%) of fossil fuel project financing, and an even smaller percentage of total Ex-Im Bank direct and indirect emissions.
Ex-Im Bank Net Negative Climate Change Finance Contribution The US Government now includes climate change financing from Ex-Im Bank and the US Overseas Private Investment Corporation (OPIC) in “fast start” finance commitment under the Copenhagen Accord. However, the US Government only counts positive climate change financing, such as renewable energy, without accounting for the much greater fossil fuel financing on the other side of the ledger. The chart below calculates the US Ex-Im Bank’s net climate change finance contribution for FY 2009 (OPIC figures not yet available). FY 2009 climate change finance = US $101 million FY 2009 fossil fuel financing = US $2,560 million FY 2009 net negative climate change financing = -US $2,459
Climate Change Financing (US$ Millions)
500 0 -500
Fossil Fuel Financing (US$ Millions)
-1000 -1500 -2000 -2500 -3000 2009
Net Negative Climate Change Financing (US$ Millions)
Source: Ex-Im Bank FY 2009 Annual Report: http://www.exim.gov/about/reports/ar/index.cfm