- ING Groep NV's (NYSE: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 (NYSE:HSBC), Barclays plc (NYSE:BCS), and BNP Paribas SA (OTC: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
