Topic overview
In brief
- In February 2024, Germany's Euler Hermes approved a guarantee for a drilling rig sold to Eneva, allowing for new gas wells in the Brazilian Amazon.
- The approval contradicted Germany's new climate rules aimed at restricting fossil fuel support, which took effect in November 2023.
- The situation raises concerns about Germany's commitment to climate goals and the potential consequences of its fossil fuel financing.
Summary
In February 2024, Germany's export credit agency, Euler Hermes, approved an export guarantee for a deep drilling rig sold by the German manufacturer Herrenknecht to the Brazilian energy company Eneva. This decision came shortly after the implementation of new climate rules aimed at restricting fossil fuel support, which took effect on November 1, 2023. The approval was based on the premise that the rig would replace older equipment at existing production sites, with official documents stating that it would not extend the production capacity or operational life of the gas field. However, within six months, Eneva had drilled seven new gas wells, contradicting the initial understanding of the project. In January 2025, Eneva announced the discovery of gas deposits estimated to hold between 2.2 to 4 billion cubic meters, further expanding its operations in the region known as the Legal Amazon, which encompasses the Amazon biome and surrounding states.
Eneva has been a dominant player in onshore exploration in Brazil, but its activities have faced scrutiny. A 2022 peer-reviewed study linked the company's gas and coal plants in Maranhão state to issues such as displacement, pollution, and food insecurity. Additionally, Brazilian media reported that Eneva is facing legal challenges over its fossil gas projects in Amazonas, where federal prosecutors allege that the company failed to consult Indigenous communities before proceeding with its operations.