The tools that give Swedish companies a head start in the green gold rush
Published: April 5, 2023, 10:51 amÅsa Larsson is product manager at EKN. Europe will become the first climate-neutral part of the world. Then a major restructuring of the business world is required. In order to promote green investments, the state-owned EKN, the Export Credit Board, has launched two new guarantees in a short time. – Many people are probably not aware that their business meets the conditions, says Åsa Larsson at EKN.Catch the giants of the future and keep good customers – read more about EKN’s guaranteesIn 2020, the European Commission clubbed its so-called green give. The package of measures will pave the way for a green transition and make Europe the world’s first climate-neutral continent by 2050 at the latest. The development at EU level is expected to have clear effects on the business world and mean major competitive advantages for companies that have a sustainable business model. – Here, Swedish companies have a big advantage. We already see that many people are changing their own business and investing more in green business. It is of course something that we want to support, says Åsa Larsson, product manager at the Export Credit Board, EKN.
Easier to change
EKN has had the government’s mission to promote Swedish exports since 1933. This is done by insuring payments and sharing risks with exporting companies, their subcontractors and banks. Since 2021, EKN has expanded its offer with two guarantees that will give a boost to Swedish companies’ sustainable development and competitiveness. The first is a green credit guarantee and can be used for business credits that contribute to climate change or for financing an already sustainable business. – Here it is good to know that the company that wants to take the loan does not have to sell green products. It could be a company that wants to change all or parts of its operations, for example with energy efficiency measures. Since it is EKN that stands behind the guarantee, of course it is required that you export or be a subcontractor to an exporter, but the conversion itself can take place at home, says Åsa Larsson. The advantage of EKN’s Green Credit Guarantee is that it significantly reduces the banks’ risk when they issue credits to companies.– This guarantee covers up to 80 percent of the bank’s risk on the credit amount. This can be compared to the 50 percent that EKN’s guarantees for SME companies usually cover, says Åsa Larsson.
Comprehensive insurance for green export business
EKN’s second new guarantee was launched in February and is a green export credit guarantee for businesses that contribute to climate change. With it, companies and banks can insure up to 100 percent of the value of a specific export business and thus protect themselves completely against the risk of not getting paid. In order for the export credit guarantee to be applied, the business must apply to green products – or products that in the end use become part of a green business. – The latter means that we can insure a wide range of business and there are probably many who are not even aware that their deal meets the conditions. If your company, for example, sells cables or other components to be used in the construction of a wind turbine, you can apply, says Åsa Larsson. Åsa Larsson believes that EKN’s new, green guarantees will make the Swedish export offer even more sustainable and thereby even more attractive.- These guarantees increase the incentives for foreign buyers to buy sustainable products from Sweden and make it easier for the Swedish companies to change. They are two important tools for driving the transition to a climate-neutral Europe – and a climate-neutral world.Read more about EKN’s guarantees – help companies with good future prospects to grow
EKN, the Export Credit Board, has the government’s mandate to promote Swedish exports and the internationalization of Swedish companies. This is done by insuring payments and sharing risks with the exporting company, its subcontractors and banks. The operation is financed with the premiums of the policyholders. The article is produced by Brand Studio in collaboration with EKN and not an article by Dagens industri