The OECD recognized that it can promote the coherence between the international environmental, climate change, social and human rights policies of the export credits and their commitments of relevant international agreements and conventions, thereby contributing to the sustainable development and the reduction of adverse environmental impacts through the export credit policy.
The OECD Common Approaches was developed and adopted in 2003. It established a set of rules for the environmental risk assessment of officially supported export financing. The document contains common practices for identifying and mitigating the environmental impact of projects. In addition to the impact on the environment, there has been an increasing emphasis on assessing social impacts. The OECD has expanded its existing approach with elements on social impact assessment and finalized it in 2012. In 2016, it has been revised which is the current version in use. The OECD Common Approaches aims to develop procedures for assessing the environmental and social impacts of officially supported export financing, to prevent and mitigate the adverse environmental and social impacts of projects, and to create the overall process of financial risk assessment for a supported project.
Hungary is being a full member of the ECG decision-making process. In 2001 the country formally declared that it accepts and will implement the common approaches. Accordingly, the institutions dealing with export credit financing and insuring had to integrate the environmental monitoring system, which operates according to the OECD Recommendation. The Hungarian legislations related to EXIM contain the condition according to which the environmental screening must be carried out.
Related Legislation and Regulatory Documents:
- Government Decree 85/1998. (V. 6.) on the Interest Equalisation System of the Hungarian Export-Import Bank
- Government Decree 435/2012. (XII. 29.) on Guarantees Assumed by the Hungarian Export-Import Bank with a State Payment Guarantee and on the Conditions and Detailed Regulations of the Replacement and Interest Costs of Foreign Currency and Interest Swap Transactions
- Government Decree 312/2001. (XII. 28.) on the terms of the insurance of non-marketable risks by the Hungarian Export Credit Insurance Plc. with a government payment guarantee provided from the central budget
- Act XLII of 1994 on the Hungarian Export-Import Bank PLC and the Hungarian Export Credit Insurance PLC
- TAD/ECG(2016)3 recommendation of the council on common approaches for officially supported export credits and environmental and social due diligence (the “common approaches”)
- Government decree 232/2003 on Tied Aid Loans Disbursed by Eximbank