ING Groep will no longer fund new oil and gas projects, its energy chief said, and it has become the largest bank to date to commit to such a step in the fight against climate change.
The move by the Dutch financial services company is increasing pressure on competitors to heed calls from the International Energy Agency (IEA) to cut funding for new fossil fuel projects to curb global warming.
Michiel de Haan told Reuters that ING would not fund projects approved after the end of 2021, but would continue to fund energy companies, although ING was already phasing out funding for the oil and gas industry and scaling up borrowing for renewable energy sources.
De Haan said the bank would aim to increase lending by 50% for renewable energy by 2025, based on strong growth in 2021, when funding had risen 26% to 7.3 billion euros.
ING’s plan to reduce funding to existing oil and gas customers and projects is more gradual, aiming to reduce it by 12% to around € 3.5 million by 2025.
Source: Capital
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