Ex-Im Bank provides medium- and long-term loans and guarantees, export credit insurance, and working capital guarantees. Trends in the Number and Values Financed for Energy Sector Projects and Applications

Of the $28 billion Ex-Im Bank provided in loans and guarantees for energy- related projects from 1990 to 2001, about 93 percent was used to finance fossil fuel projects. Overall, Ex-Im Bank financed renewable energy projects totaling $730 million from 1990 through 2001 or about 3 percent of all energy projects financed. The 1995 and 1998 reports did not address renewable energy. The relatively small share of most renewable resources in world energy consumption, due partly to cost disadvantages, is viewed as a key factor underlying the demand for Ex-Im Bank financing. While Ex-Im Bank has undertaken some efforts to increase its funding of renewable energy exports, they have been limited. In addition to information on types of outreach and specific processes or programs to promote renewable energy exports, Ex-Im Bank should provide information on the types and amounts of financing actually provided, including the number and values financed for renewable energy transactions each year, and the specific renewable energy sectors to which the financing is provided. Appendix I: Objectives, Scope, and Methodology

In response to Chairman Bereuter’s request, we identified and assessed (1) trends in Ex-Im Bank’s financing of and applications for fossil fuel and renewable energy-related projects, (2) the extent of Ex-Im Bank’s reporting to Congress on its renewable energy efforts, and (3) key factors affecting Ex-Im Bank’s renewable energy sector financing.
What GAO Found

From 1990 through 2001, the Export-Import Bank (Ex-Im Bank) of the United States provided export financing commitments totaling $31 billion to promote the export of U.S. goods and services for use in the energy sector. The energy sector is divided into fossil fuel, renewable, and nuclear energy. Financing is provided through a range of products, including loans and guarantees, export credit insurance, and working capital guarantees. Of the $28 billion Ex-Im Bank provided in loans and guarantees for energy-related projects from 1990 to 2001, 93 percent was used to finance fossil fuel projects, and 3 percent was for renewable energy projects. Trends in applications for fossil fuel and renewable energy projects largely mirrored trends in the energy projects financed because 90 percent of applications submitted were financed. Since 1990, Ex-Im Bank has not consistently provided information about its renewable energy program to Congress; its 1995 and 1998 annual reports did not address renewable energy. Ex-Im Bank's energy portfolio is affected by broad factors such as worldwide market conditions and to some degree by its policies, promotion efforts, and programs. The relatively small share of renewable energy in worldwide energy consumption, due in part to cost factors, is a key factor. Although Ex-Im Bank has undertaken some efforts to promote renewable energy, it has not focused specifically on this sector.