General – Banking
According to Reuters ING will no longer finance new oil and gas projects, becoming the biggest bank yet to commit to such a step in the fight against climate change.
The move by the Dutch financial services firm raises pressure on peers to heed a call by the International Energy Agency (IEA) for a halt to funding for new fossil fuel projects to help cap global warming at no more than 1.5 degrees Celsius.
Michiel de Haan told Reuters that ING would not finance projects approved after Dec. 31, 2021 but would still fund energy firms, although ING is already phasing down financing to the oil and gas industry and scaling up lending for renewables.
De Haan said the bank would target a 50% increase in lending for renewable energy by 2025, building on strong growth in 2021, when financing grew 26% to 7.3 billion euros ($8.05 billion).
ING’s plan to reduce funding for existing oil and gas clients and projects is more gradual, with a target to cut it by 12% to about 3.5 billion euros by 2025.