Commercial, Energy Efficiency, GHG Emissions, Finance, Sourcing Renewables - December 22, 2023
ING Phasing Out Financing Oil and Gas Loans
European bank ING announced it is phasing out the financing of upstream oil and gas activities by 2040 and aiming to triple new financing for renewable energy by 2025.
“Climate change is one of the world’s biggest challenges,” said Steven van Rijswijk, CEO of ING, in a statement. “The world needs energy, but still too much of that is coming from fossil fuels. We significantly increase our commitment to renewable energy and at the same time give a clear, accelerated path for the complete phasing out of oil and gas extraction from our financing portfolio. We realize more work will be necessary by all parties to reach a net zero society. We will therefore continue to adapt our financing and policies, collaborating with clients, sector experts, scientists, regulators, and governments in addressing the urgency to transition to more sustainable ways of doing business.”
Oil and gas loans will be reduced by 35% by 2030, which translates into a reduction of 50% absolute emissions financed linked to the investment bank’s upstream portfolio (Scope 1, 2, and 3).
By 2040, the financed emissions linked to ING’s portfolio will be reduced to zero.
ING will also seek to triple the financing of renewable power generation to €7.5 billion annually by 2025, up from €2.5 billion in 2022. The bank’s new target replaces the previous target of increasing renewables financing by 50% by 2025 from the €1.5 billion base in 2021.
Earlier major steps made by ING include the end of financing coal-fired power generation and thermal coal mining, as well as dedicated financing of upstream and midstream for new oil and gas fields.
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