New green policies on behalf of the State
With the launch of the new Green Policies, Cesce, the Spanish Agency for Export Credit, is improving the conditions for exportation coverage and creating a new insurance policy for foreign investment.
The objective is to support Spanish companies taking part in projects that contribute to preserving the planet.
To this end, Cesce is combining the government's efforts in the fight against climate change and compliance with the Paris Accords, supporting those companies that, in their international activity, contribute to these objectives.
Cesce is adapting its coverage to promote the activity of Spanish companies in sectors considered green in accordance with the EU Taxonomy or Annex I of the OECD Consensus.
Who is it for?
All those projects that are considered “green” will be eligible, by meeting the requirements set out in the European Union Taxonomy or falling within the project typology of Annex I of the OECD Consensus.
Cesce is improving its conditions in coverage for
- Buyer Credit (foreign buyer financing),
- Supplier Credit (coverage for the exporter for the risk of default risk or contract termination)
- Works Insurance (coverage for risk of non-payment or termination of works contracts abroad).
Green projects are all those that meet the requirements set out in the EU Taxonomy*, which covers the following categories:
- Climate change mitigation
- Climate change adaptation
- The sustainable use and protection of water and marine resources.
- The transition to a circular economy
- Pollution prevention and control
- The protection and restoration of biodiversity and ecosystems
*Obtaining the green project qualification from an approved certifying company will be a requirement.
Likewise, all those included in Annex I of the OECD Consensus will be considered green projects:
- Energy production from renewable sources
- Water
- Zero and low emissions transport
- Energy transmission, distribution and storage
- Other Climate Change mitigation and adaptation projects
In principle, third-party certification is not required.
MORE ABOUT GREEN PROJECTS
Projects that are considered eligible will benefit from the following more favourable conditions:
- These operations will be considered a priority
- Refund of study expenses on the signing of the policy
- Flexibility in the national content standard: goods and/or services of Spanish origin may represent 20% of the credit insured by Cesce, instead of the 30% or 40% that is required as a general rule (prior to considering Cesce’s premium and IDCs which can increase the amount of the insured loan).
- For operations subject to the OECD Consensus, the price will be discounted by applying the discounts allowed in said agreement.
- If the project falls within one of the sectors identified in Annex I of the OECD Consensus, more flexible financing conditions are allowed. (E.g. repayment terms of up to 22 years in certain cases.)
Coverage against the risk of non-payment of the credit granted to foreign debtors
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Coverage for financial institutions that grant loans to foreign debtors for purchasing Spanish goods and services.
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This insurance covers the bank against the risk of non-payment of the credit.
Export contract non-payment and/or termination risk coverage
- Exporter risk coverage.
- Provide the bank financing through the Certificate of Coverage for the bank that discounts the invoices.
Cesce has approved a line of coverage for the value of 30 million euros.
Non-payment and contract termination risk coverage
- Coverage for Spanish companies that carry out construction contracts, projects, assemblies, etc., overseas.
- It covers the risk of seizure or non-repatriation of machinery and the inability to transfer to Spain the working capital deposited in the foreign country to finance the work.
Cesce is launching a new form of coverage: the green investment policy, under which the risk of non-payment of credits granted to foreign subsidiaries of Spanish companies will be covered. This policy offers coverage for both political and commercial risks (de facto or legal insolvency of the debtor or guarantor). This is a category not linked to exportation.