Companies involved in renewable energy and water projects can now obtain official export credits and guarantees for projects with extended repayment terms of 15 years.

The OECD countries have agreed that export credit agencies (ECAs) may guarantee renewable energy and water projects with extended repayment terms up to 15 years. In the past the maximum repayment term has been 8.5-12 years, depending on the type of project.

The agreement applies as of July 1, 2005 for a two-year trial basis.

Guarantees allowing longer credit periods the OECD countries will promote projects that use renewable energy resources, which use natural resources sparingly and help increase access to clean water.

At present the agreement does not apply to hydro power. This is because the OECD countries have decided to consider whether the extant environmental and social guidelines and criteria applied on official export credits are sufficient. A decision regarding hydro power and dams will be taken later on.