The government has placed greater emphasis on the synergies between aid and trade. The EBA report, Bridging Aid and Trade: Exploring Synergies Between Swedish Climate-Related Development and Export Finance, examines how Sweden can strengthen the links between climate-related aid and export finance.
Through a review of the mandates, policies, and governance of four Swedish organisations (Sida, Swedfund, EKN, and SEK), as well as a systematic comparison with four European countries (Denmark, France, Germany, and the United Kingdom), the report’s authors identify opportunities and obstacles to achieving greater impact in Sweden’s international climate efforts.
Key findings:
- The national system in this area is currently structurally fragmented, even when compared with other countries.
- Closer cooperation could enable projects that would otherwise be too risky or costly. Export financing can be used to scale up and replicate successful climate projects initiated by development actors.
- Swedish climate initiatives must be firmly anchored in partner countries’ own climate plans, so that aid is not driven by Swedish export interests.
- Transparency can be enhanced through clearer and coordinated methods for measuring and reporting climate finance, alongside more open data and common working methods.