ING takes next steps on energy financing after COP28
ING takes next steps on energy financing after
COP28
- Phase-out of upstream oil & gas financing by 2040
- Aim to triple renewables financing by 2025
ING announced today it is taking the next steps in our energy
approach, phasing out the financing of upstream oil and gas
activities by 2040 and aiming to triple new financing for renewable
energy by 2025. These steps, updating our Terra approach, come
after governments at COP28 agreed to transition away from fossil
fuels and triple renewable energy capacity.
Steven van Rijswijk, CEO of ING said: “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. We realise 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 will speed up phasing out the financing of upstream
(exploration and production) oil and gas activities. With our Terra
approach we aim to steer our oil and gas portfolio in line with the
Net Zero Emissions scenario for Advanced Economies of the
International Energy Agency (IEA). As a result, loans to upstream
oil and gas activities will be reduced by 35% by 2030, which
translates into a reduction of 50% absolute emissions financed
linked to our upstream portfolio (scope 1, 2, and 3). By 2040 the
financed emissions linked to our portfolio will be reduced to zero.
We take an inclusive approach and support our energy clients’
transition towards net zero.
ING will also aim to triple the financing of renewable power
generation to €7.5 billion annually by 2025, up from €2.5 billion
in 2022. This follows the agreement made by governments at COP28
and the guidance provided by the IEA that renewable power
generation must triple in capacity by 2030 to meet net-zero goals.
Our new target, which is five years ahead of the COP28 guidance,
replaces the previous target of increasing renewables financing by
50% by 2025 from the €1.5 billion base in 2021.
As society transitions to a low-carbon economy, so do our
clients, and so does ING. The low-carbon transition cannot happen
overnight. So even though we finance a lot of sustainable
activities, we still finance more that’s not. That is a reflection
of the current global economy, how far the world has come and still
needs to go. About 80% of energy used globally today is fossil
fuel-based. Electrification is key for the decarbonisation of the
global energy system. The IEA stresses the critical importance of
the massive build-out of renewable power generation, like wind,
solar, water and geothermal.
In developing ING’s energy strategy, we balance three key
interests: the need to decarbonise to fight climate change, the
need for energy to remain affordable for people and companies, and
the need for the energy supply to remain secure. Earlier major
steps in adapting our policies included to stop financing coal
fired power generation and thermal coal mining and the ending of
dedicated financing of upstream and midstream for new oil and gas
fields. We are guided by the IEA’s 1.5-degree climate scenario and
will continue to update our targets in line with their net zero by
2050 pathways.
Note for editorsFor further information on ING,
please visit www.ing.com. Frequent news updates can be found in the
Newsroom or via the @ING_news X feed. Photos of ING operations,
buildings and its executives are available for download at
Flickr.
Press
enquiries |
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Investor
enquiries |
Daan
Wentholt |
|
ING Group
Investor Relations |
+31 20 576
6386 |
|
+31 20 576
6396 |
Daan.Wentholt@ing.com |
|
Investor.Relations@ing.com |
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- PR post COP28 policy update - FINAL
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