EXCLUSIVE Dutch bank ING ends financing for new oil and gas projects

The brand of ING financial institution is pictured at the entrance of the group’s primary place of work in Brussels, Belgium September 5, 2017. REUTERS/Francois Lenoir

LONDON, March 23 (Reuters) – ING Groep NV (INGA.AS) will no longer finance new oil and gas jobs, its electrical power chief reported, turning out to be the most important financial institution nonetheless to dedicate to these a phase in the combat in opposition to weather adjust.

The move by the Dutch fiscal services agency raises force on friends to heed a simply call by the International Electricity Company (IEA) for a halt to funding for new fossil gasoline assignments to support cap world wide warming at no more than 1.5 degrees Celsius. browse much more

Michiel de Haan advised Reuters that ING would not finance projects authorized soon after Dec. 31, 2021 but would still fund energy corporations, while ING is by now phasing down funding to the oil and gas field and scaling up lending for renewables.

De Haan explained the lender would goal a 50{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} raise in lending for renewable electricity by 2025, setting up on powerful progress in 2021, when financing grew 26{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} to 7.3 billion euros ($8.05 billion).

ING’s program to minimize funding for current oil and fuel clientele and assignments is extra gradual, with a goal to reduce it by 12{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} to about 3.5 billion euros by 2025.

“Decarbonisation of the electrical power program … is of nearly existential great importance, but so is economical electricity and trustworthy provide of electrical power,” de Haan stated.

“We can make the choice to discontinue our involvement in new greenfields, but we (will) proceed our present involvement in oil and gas throughout the entire world since we want to meet up with people other two targets.”

Lucie Pinson, govt director at NGO Reclaim Finance, reported ING was the major financial institution just after Crédit Mutuel to introduce these types of a plan on challenge finance, but whilst it was a “wonderful sign” to the sector, it did not go much plenty of.

Especially, banks desired to rein in all other finance to the sector extra promptly and be ready to fall organizations preparing to increase production, one thing so considerably only French general public lender Banque Postale has fully commited to. read through extra

“ING’s determination to lessen its funding to the total sector without having committing to immediately exclude firms opening new oil and gas fields does not augur very well for our weather,” she claimed.

Investor pressure on banking institutions to act more quickly on local climate adjust has enhanced in the calendar year due to the fact the IEA revealed its report on ending fossil gas funding.

But a lot of banks have only promised to cease lending in slim situation, these kinds of as for drilling in the Arctic. The Ukraine disaster may well further more hamper the change, as Europe seeks choices to Russian oil and gas. browse more

“It really is crucial to recognise that the IEA also suggests that in the foreseeable future, oil and gas will be wanted,” de Haan said, including that the lender was trying to get to enable prospects decarbonise their companies.

ShareAction, an organisation pushing for liable investment decision, stated in a February report that 25 of Europe’s top financial institutions had delivered $55 billion in funding in 2021 for strength companies scheduling to broaden oil and fuel production.

It said HSBC (HSBA.L), Barclays and BNP Paribas (BNPP.PA) had been amid the largest funders of oil and gasoline initiatives in 2021. go through far more

($1 = .9069 euros)

Modifying by Edmund Blair and Jason Neely

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