European bank ING has announced shifts in its energy approach, aligning with global efforts to transition away from fossil fuels.
The bank highlighted its plans to cease financing upstream oil and gas activities by 2040 and triple new financing for renewable energy by 2025 in response to the recently concluded 28th session of the Conference of the Parties or COP28 agreements and guidance from the International Energy Agency (IEA).
The bank’s terra approach – a financing strategy to steer the most carbon-intensive parts of its portfolio towards reaching net zero by 2050 – will lead to a 35% reduction in loans to upstream oil and gas activities by 2030, translating into a 50% absolute emissions decrease linked to the portfolio. By 2040, financed emissions will reach zero, shared the bank.
Simultaneously, the bank shared its plans to target tripling renewable power generation financing to €7.5 billion annually by 2025, superseding its 2021 baseline. This goal, five years ahead of COP28 guidance, responds to the imperative for renewable capacity to triple by 2030.
“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,” stated the bank.
ING also highlighted decarbonisation to combat climate change, ensuring affordable energy for individuals and businesses and maintaining a secure energy supply as its core energy strategies.
The bank’s prior policy adaptations involve discontinuing financing for coal-fired power generation and thermal coal mining, along with ending dedicated funding for new oil and gas fields.
The bank shared that its strategy – aligned with the IEA’s 1.5-degree climate scenario – would be regularly updated in line with its net-zero by 2050 pathways.
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