On behalf of the Dutch government, we are developing a product that supports investments in capital expenditure for projects in the field of critical raw materials and sustainable fuels. There must be a clear link with the Netherlands' international trade.
Read on to find out what this entails and what it could mean for you.
In order to achieve climate targets and realize the digital and industrial transition, reliable and sustainable access to critical raw materials and sustainable energy sources is essential. Dependence on a limited number of third countries for these raw materials poses a strategic risk. The Dutch government is therefore committed to increasing the security of supply of critical minerals and metals, promoting circularity, and reducing the impact on people and the environment. Atradius Dutch State Business will play an active role in mobilizing finance for projects that contribute to these objectives.
To support this transition with the extraction and import of critical raw materials and sustainable fuels, Atradius DSB is developing two new insurance products, one for projects abroad with Dutch buyers and one for projects in the Netherlands. These products are aimed at insuring financing for:
Foreign projects are eligible if there is a long-term purchase agreement with a Dutch party (or in certain cases an EU party, provided that the materials enter the EU via the Netherlands). The value of the Dutch purchase and the economic activity in the Netherlands determine the amounts for which Atradius DSB can insure loans for projects.
Domestic projects can receive cover from Atradius DSB if a substantial part of the necessary feedstock is imported and/or if the production is largely exported.
All existing conditions remain applicable. This means, among other things, that the financial, ESG and compliance risks must be assessed and found to be acceptable. For projects in the Netherlands, the conditions offered by Atradius DSB must comply with EU state aid rules.
What risk is covered?
The products are based on our existing Financing Policy, which protects banks against commercial and political risks when granting loans. Policies under these two new products can only be issued for financing to an investor for capital expenditure on a project.
Contact
Companies and financiers with projects that may fall within the scope of the instrument can contact our specialists. They will then be kept informed of further developments.
The presentation under downloads (in English) provides more information about the different variants of the product under development and the advantages of our coverage.
Is your organisation active in the critical raw materials or sustainable fuels chain — or do you expect to be in the future? If so, please contact us using the form below.
