Prof. Christian Downie1
1Australian National University, Australia
Biography:
Christian Downie is a Professor in the School of Regulation and Global Governance at the Australian National University, where he is the Director of the Governing Energy Transition (GET) Lab. Christian has worked as an advisor to several Australian Government agencies, most recently as a Principal Advisor on secondment in the Department of Climate Change, Energy, Environment and Water, and before that in the Department of the Prime Minister and Cabinet. Christian has spent time teaching or researching at the University of Cambridge, the Massachusetts Institute of Technology, and the London School of Economics and Political Science, among others.
Abstract:
In order to avert the worst consequences of climate change while meeting economic development objectives, global financial flows must be redirected away from fossil fuels and into clean energy. There has been significant research on the role of multilateral development banks in steering capital for sustainable development, but there has been less focus on bilateral public financial institutions, such as national development banks and export credit agencies (ECAs). Using a panel dataset of OECD export-credit agency transactions in the energy sector over two decades, we assess the rate of energy transitions in export credit portfolios and find evidence of decarbonization but limited investment in clean energy. Based on this evidence, we conducted nearly two-dozen interviews with senior ECA executives and other stakeholders involved in their governance in the U.S. and the U.K. to determine the key drivers and barriers to greening export credit portfolios. We identify the following key variables: the extent of political control over the bureaucracy, the size and composition of green industrial bases, and the policy tools available to ECAs to support small-to-medium size enterprises in the renewables sector. We conclude with policy recommendations and suggestions for future research.