German public finance has directly enabled fossil fuel expansion in the Brazilian Legal Amazon through the purchase of the “Eneva Explorer” drilling rig, according to a research briefing published by Oil Change International (OCI) and partner organizations. The investigation challenges claims made by the German government that the publicly backed financing would merely replace older equipment at existing gas production sites, revealing instead that the rig drilled seven new gas wells in Maranhão’s Parnaíba Basin within six months of its 2025 deployment.
The findings arrive as the German government considers relaxing its export finance climate guidelines. These rules were initially established in 2023 to fulfill Germany’s commitments under the Clean Energy Transition Partnership (CETP), an international accord designed to end public financial support for fossil fuels abroad by the end of 2022. While most signatories have phased out such investments, Germany approved USD 1.5 billion for fossil fuel projects across 2023 and 2024, making it one of the alliance’s most prominent violators according to Oil Change International.
The Climate and Environmental Impact in Brazil
Scientific consensus indicates that avoiding the worst impacts of global heating under the Paris Agreement’s 1.5°C threshold leaves no room for new fossil fuel extraction. According to data analyzed by OCI, the drilling enabled by German export finance directly contributes to expanding Eneva’s gas reserves and developing new extraction fields. Eneva’s public statements suggest the rig could soon see deployment near the Amazonas Basin.
Existing gas operations managed by Eneva have faced significant scrutiny. Research documented in the OCI briefing links the company’s activities to environmental degradation, food insecurity, and ongoing legal challenges regarding alleged violations of Indigenous rights. These social and ecological risks complicate the continued provision of taxpayer-backed international finance for fossil fuel expansion.
Export Finance Rules and Political Stakes
The debate over Germany’s export credit agency rules highlights a growing tension between domestic climate pledges and international financial practices. Under the CETP framework, participating nations helped drive a 78 percent reduction in international fossil fuel finance globally. However, Germany’s continued approvals threaten that progress.
Katharina Rall, Research Manager at Oil Change International, emphasized the financial and reputational risks facing Berlin. “Germany is at a crossroads,” Rall stated, noting that weakening export finance rules would channel billions more in public money toward climate pollution while reducing the country’s energy security, economic competitiveness, and international credibility.
Previous joint investigations, including a 2025 study titled Wasting Public Money conducted by Oil Change International and ClientEarth, warned that Berlin was actively risking the dilution of its 2021 overseas fossil fuel phase-out pledge. Critics argue that supporting new oil and gas assets exposes taxpayers to the financial dangers of stranded assets as global markets transition toward renewable energy.
Policy Demands and Future Outlook
Oil Change International is urging the German government to strengthen its export finance regulations rather than dilute them. Specifically, the organization recommends:
- Closing remaining loopholes for fossil gas within export credit policies.
- Terminating public support for all international fossil fuel projects.
- Extending mandatory climate screening across the entirety of the export finance portfolio.
- Enhancing transparency regarding project approvals.
As policymakers weigh revisions to the sectoral guidelines, the debate centers on whether public funds should continue locking partner nations into long-term fossil fuel dependencies or redirect resources toward secure, affordable clean energy systems.