Sweden’s export credit system – comprising SEK and the Swedish Export Credit Agency (EKN) – outlined in its follow-up report on the 2020 government assignment how national and international export financing systems can contribute to a clear climate transition and reduce greenhouse gas emissions. The measures introduced are to be grounded in science and implemented through international collaboration.

Recently, another step was taken through the launch of a jointly developed methodology to assess whether transactions are in line with the Paris Agreement’s goal of limiting global warming to 1.5°C.

The Paris Alignment Methodology evaluates both current greenhouse gas emissions and the presence of a credible and robust transition plan toward achieving net-zero emissions for a given project or activity.

Achieving net zero means ensuring that the amount of greenhouse gases released into the atmosphere does not increase their overall concentration, which is a key factor influencing global warming.

Strengthening the existing sustainability framework

Helena Engnér-Aili, specialist Sustainable Finance at SEK, emphasizes that the new model strengthens the decision-making process for credit approvals.

“The model is an addition to our existing sustainability analysis and aligns with the guidelines of the European Banking Authority as well as other international standards. It complements our current assessments of environmental and social risks and gives us a concrete tool to evaluate the climate impact of our transactions,” says Helena Engnér-Aili.

The model was developed in collaboration with RINA, an Italian consultancy firm, and is applicable across all financial instruments available to SEK and EKN. To support Swedish exports, SEK provides the financing while EKN offers guarantees, insuring companies and banks against the risk of non-payment.

A structured approach to sustainable finance

Klas Lindgren Dansbo, Head of Large Corporates at SEK, highlights that the methodology enhances the efficiency of sustainable finance processes.

“The model provides a concrete and structured way for SEK to ensure that our transactions align with climate targets. It gives us the tools to make well-informed decisions, making the process more professional and effective. For our clients, this means we can support long-term and sustainable business by following established guidelines and methodologies,” says Klas Lindgren Dansbo.

Transactions are classified using five categories: achieves net zero, aligned with a net-zero pathway, aligning towards a net-zero pathway, not aligned, not classifiable (due to lack of data).

Klas Lindgren Dansbo is clear that the aim is not to block business.

“Some clients may initially feel that this adds an extra layer of complexity. However, for those already working with sustainability, the model should not be seen as a barrier. Our goal is not to halt transactions, but to ensure we are making sustainable choices,” he explains.

Fully implemented in 2025

Climate assessments have been carried out for all export credits and project finance transactions that SEK approved during 2025. The methodology is now an integrated part of SEK’s risk framework and will continue to be rolled out for transactions identified as having high climate risk.