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

The symbol of ING financial institution is pictured at the entrance of the group’s most important business office in Brussels, Belgium September 5, 2017. REUTERS/Francois Lenoir

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  • IEA phone calls to stop funding for new fossil gas projects
  • ING’s transfer puts strain on other worldwide gamers to act
  • Dutch financial institution will nevertheless fund current oil and fuel initiatives

LONDON, March 23 (Reuters) – ING Groep NV (INGA.AS) will no more time finance new oil and gas tasks, its energy chief said, turning into the most significant lender nonetheless to dedicate to these types of a move in the battle against weather transform.

The move by the Dutch monetary solutions firm raises strain on friends to heed a connect with by the Global Energy Agency (IEA) for a halt to funding for new fossil fuel projects to assist cap world-wide warming at no far more than 1.5 degrees Celsius. study far more

Michiel de Haan told Reuters that ING would not finance initiatives accredited right after Dec. 31, 2021 but would nevertheless fund electrical power firms, even though ING is previously phasing down funding to the oil and gasoline marketplace and scaling up lending for renewables.

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De Haan reported the bank would focus on a 50% raise in lending for renewable vitality by 2025, building on sturdy advancement in 2021, when funding grew 26% to 7.3 billion euros ($8.05 billion).

ING’s strategy to lower funding for current oil and gasoline clients and jobs is extra gradual, with a goal to cut it by 12% to about 3.5 billion euros by 2025.

“Decarbonisation of the energy technique … is of just about existential significance, but so is reasonably priced energy and dependable provide of energy,” de Haan mentioned.

“We can make the conclusion to discontinue our involvement in new greenfields, but we (will) keep on our existing involvement in oil and gasoline throughout the entire world since we require to fulfill individuals other two targets.”

Lucie Pinson, government director at NGO Reclaim Finance, explained ING was the greatest lender right after Crédit Mutuel to introduce such a coverage on venture finance, but while it was a “terrific signal” to the sector, it did not go considerably plenty of.

Specifically, banks needed to rein in all other finance to the sector much more swiftly and be well prepared to drop companies preparing to broaden production, a thing so much only French public loan company Banque Postale has fully commited to. examine a lot more

“ING’s commitment to lower its funding to the all round sector without having committing to promptly exclude corporations opening new oil and gasoline fields does not augur perfectly for our weather,” she claimed.

Trader stress on banking institutions to act speedier on weather modify has enhanced in the 12 months because the IEA revealed its report on ending fossil gas funding.

But several banking companies have only promised to cease lending in slim conditions, such as for drilling in the Arctic. The Ukraine disaster may further more hamper the shift, as Europe seeks choices to Russian oil and gas. go through additional

“It truly is significant to recognise that the IEA also indicates that in the foreseeable future, oil and fuel will be required,” de Haan claimed, introducing that the bank was looking for to support clients decarbonise their businesses.

ShareAction, an organisation pushing for dependable financial commitment, reported in a February report that 25 of Europe’s foremost financial institutions had presented $55 billion in funding in 2021 for electricity providers organizing to broaden oil and gas manufacturing.

It mentioned HSBC (HSBA.L), Barclays and BNP Paribas (BNPP.PA) ended up between the major funders of oil and gasoline assignments in 2021. read more

($1 = .9069 euros)

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