- Article
- Sustainability
- The Future of Infrastructure
ECAs: Out of turbulence comes innovation
Global Export Credit Agency (ECA) financing is under pressure from a host of challenges. But testing times can be the stimulus for innovation – and growth.
As global trade industry leaders descended upon the TXF Global 2025 conference in Copenhagen recently, you would be forgiven for thinking the mood might have been somewhat downbeat, given the downward trend for ECA finance volume figures.
ECA volumes fell by almost half between Q1 2023 and Q1 2025 – from around $40bn to just $23bn, according to TXF. Alongside the impact of global trade tariffs, higher for longer interest rates remain top of mind.
However, despite this potentially negative backdrop, the event explored a multitude of actions ECAs are taking to innovate and respond to the current environment.
One significant theme explored is how ECAs are looking to develop critical mineral related products. This is seen an attractive new source of funding for the metals and mining industry, and in turn secures offtake for the ECA domestic market.
Other priority topics included the energy transition and energy security, given the reliance of these raw materials on clean energy sources.
An opportunity for innovation
Manav Futnani, Global Head of Export Finance, HSBC, was speaking at the event and explains that there is considerable opportunity for ECAs to catalyse finance and drive market growth. He says that "Support from ECAs is key during times of volatility in reducing risk barriers."
Futnani stresses that ECAs have a proven track record of responding to market volatility with innovation – and says that a similar reaction to the current situation can spark a significant upturn in the market.
If you think of the ECA-related innovations that have happened in the past, you will observe that most took place in an environment of some turbulence or dislocation. And while many of those may have been introduced as temporary solutions, they have often stayed in place permanently.
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As an example, Futnani cites the 2008 financial crisis: “Clients all over the world still wanted to build power plants, telecom networks, and new factories.
“In the face of the funding shortage after the financial crisis, the ECAs reacted by putting new funding schemes in place – many of which still run today.”
Another such example is the UK’s response to Brexit, Futnani adds.
“In response to Brexit, the UK government put in a phenomenal programme to support exporters” he explains. “That programme survived long beyond Brexit and evolved into a product that proved invaluable when the Covid-19 pandemic came along. ECAs have a track record of innovating at times of stress, and it is our strong hope and expectation that they will come up with a strong response again.”
Indeed, some new measures aimed at helping exporters deal with the impacts of tariffs are already emerging.
For example, the Spanish ECA CESCE announced within hours of Liberation Day tariffs, an increase in total appetite from EUR9bn to EUR15bn. Meanwhile, other ECAs are focusing on expanding their existing domestic schemes, making it easier for clients to access liquidity. UK Export Finance, for example, is looking to support clients across impacted sectors with an increase of GBP10bn of appetite for its domestic programme.
Filling the void
Even without significant innovation, Futnani says it’s likely the dip in ECA volumes will be just that – a temporary decline. He says that’s partly because firms will eventually resume making big capital procurement decisions, and partly because when liquidity becomes constrained elsewhere, ECA financing is the one product that “continues to be available”.
"By their nature, ECAs are becoming a more appealing solution in an uncertain environment. As a result, ECAs could see volume in Q4 reach or even surpass the level of activity seen in Q1 2024 – more than $36bn,” he said.
Flexible solutions to open up greater ECA access
Alongside those developments, Futnani says further ECA market buoyancy could stem from ECAs launching more flexible product initiatives – making ECA facilities easier to access for large businesses with diverse sourcing requirements.
“Untied financing – ECA facilities not linked to a specific export contract – continue to be a growing theme,” Futnani explains, “with various ECAs exploring and developing more flexible finance products to incentivise companies to increase their imports from the country of the ECA.
“These untied schemes will act as another tool in the toolkit for clients to raise general corporate facilities, supporting a diversification of funding to traditional sources.”
Helping to shape the future of ECAs
Alongside all these developments, Futnani says HSBC intends to continue playing a critical role in the development of the industry – to help drive innovation and unlock potential for growth.
“At HSBC, we have been – and will continue to – actively work with ECAs on innovation, helping them build new programmes, helping them amend or adapt existing programmes, and helping them continue to meet the specific needs of clients.”
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