ING Groep Becomes Biggest Bank To Phase Down Funding Of New Oil & Gas Projects: Reuters

  • ING Groep NV's ING energy chief said that the bank 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.
  • According to the Reuters report, the move raises pressure on peers to heed a call by the International Energy Agency (IEA) to halt funding for new fossil fuel projects to help cap global warming.
  • Michiel de Haan told Reuters that ING would not finance projects approved after December 31, 2021, but would still fund existing oil and gas projects. 
  • However, ING is already reducing financing to the oil and gas industry and scaling up lending for renewables, targeting a 50% increase in lending for renewable energy by 2025.
  • ING's plan to reduce funding for existing oil and gas clients and projects is more gradual, aiming to cut by 12% to about €3.5 billion by 2025.
  • ShareAction, an organization pushing for responsible investment, said in a February report that 25 European banks had provided $55 billion in funding in 2021 for energy companies planning to expand oil and gas production.
  • HSBC Holdings plc HSBCBarclays plc BCS, and BNP Paribas SA BNPQY were among the biggest funders of oil and gas projects in 2021.
  • Price Action: ING shares are down 0.84% at $10.60 during the premarket session on the last check Wednesday.
  • Photo by Charlie Hang via Unsplash
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