ING Ditches Oil & Gas, Aims to Triple Renewables Financing by 2025

ING Groep NV has decided to change course and phase out upstream oil and gas financing in favor of renewable energy projects, in line with decisions reached at COP28.

The bank said in a media release that its upstream oil and gas financing will be phased out by 2040, while its investment in renewable energy will be tripled by 2025.

The bank said these steps are in line with the agreement governments made at COP28 to transition away from fossil fuels and triple global renewable energy capacity.

“Climate change is one of the world’s biggest challenges. The world needs energy, but still too much of that is coming from fossil fuels. Building on the progress made by world leaders at the COP28 conference and the most recent scientific insights and scenarios, we’re today announcing our next impactful actions to contribute to the acceleration of the energy transition. We significantly increase our commitment to renewable energy and at the same time give a clear, accelerated path for the complete phasing out of oil and gas extraction from our financing portfolio”, Steven van Rijswijk, CEO of ING said.

“We realize more work will be necessary by all parties to reach a net zero society. We will therefore continue to adapt our financing and policies, collaborating with clients, sector experts, scientists, regulators, and governments in addressing the urgency to transition to more sustainable ways of doing business”.

ING said it will speed up phasing out the financing of upstream (exploration and production) oil and gas activities. As a result, loans to upstream oil and gas activities will be reduced by 35 percent by 2030, which translates into a reduction of 50 percent absolute emissions financed linked to its upstream portfolio (scopes 1, 2 and 3).

By 2040 the financed emissions linked to its portfolio will be reduced to zero, according to ING.

On the other hand, the bank has set an aim of tripling the financing of renewable power generation to $8.2 billion (EUR 7.5 billion) annually by 2025, up from $2.7 billion (EUR 2.5 billion) in 2022. This also means the company has replaced its previous target of increasing renewables financing by 50 percent by 2025 from the $1.6 billion (EUR 1.5 billion) base in 2021.

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