UAE’s Federal Export Credit Company, Etihad Credit Insurance (ECI) has signed a Memorandum of Understanding (MoU) with South Korea’s official export credit agency, Korea Trade Insurance Corporation (K-SURE) to enhance investments in sustainable green energy.
According to the statement, the agreement will focus on hydrogen production project development and bilateral trade connections.
Under the terms of the agreement, ECI and K-SURE will collaborate to provide enough support for a variety of joint projects, particularly in key sectors including hydrogen economy, renewable energy, and electric vehicles, using a variety of trade credit insurance solutions.
Further, they will join together to help exporters in a variety of industries to enter the global market without having to worry about payment delays caused by commercial or non-commercial concerns.
The partnership will also focus on providing assistance in recovering claims of each entity through close cooperation and coordinated actions, as per the statement.
“The export finance has a crucial role to play in the transition to a carbon-free society in the world. The joint efforts by export credit agencies, corporates, and the financial sector need to be the drivers to facilitate the transition from fossil fuels to clean energy. ECA-backed projects help secure sustainability in a wider sense to include social issues like access to clean energy and water as well as urban development. ECAs’ cover helps the financial sector provide the necessary liquidity to finance the transition by sharing the risk and provide long-term funding.”
“This agreement between the export credit agencies of the UAE and South Korea will catalyze enhancing the competitive edge of export and business communities in the respective countries. Moreover, the crucial aspect of this pact lies in its greater focus on reinforcing initiatives that aim to reduce carbon emission, reflecting the UAE’s national drive to achieve net-zero emissions by 2050,” remarked Mr. Falcion.
For his part, Mr. Inho Lee, Chairman and President of K-SURE said that, “Our coordinated efforts and insurance solutions will eliminate many potential risks our traders and businesses face in a volatile marketplace, which has become more prone to instability due to the pandemic fallouts.”
“It will also strengthen our collaborative ongoing and future sustainability projects, proving to the world how cooperation between nations is indispensable to alleviate the grave ecological concerns of our times,” Mr. Lee further added.