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

Author: Vandana Singh | March 23, 2022 07:45am

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.
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