The largest bank in the Netherlands, ING, is further restricting its energy financing by halting all new general financing to so-called pure-play upstream oil and gas companies that continue to develop new oil and gas fields.
ING, which has already announced some financing restrictions to fossil fuels in recent years, unveiled new steps in its policy for energy financing in its annual Climate Progress Update 2024 published on Thursday.
"We will stop all new general financing to so-called pure-play upstream oil & gas companies that continue to develop new oil & gas fields," the bank said. This policy is applicable with immediate effect and includes general corporate financing and bonds.
ING also announced a next step on LNG driven by guidance from the International Energy Agency (IEA), the bank said.
"We will stop providing new financing for new LNG export terminals after 2025," it added.
ING added, "The urgency of climate change is undeniable and ING wants to play a leading role in accelerating the global transition to a low-carbon economy."
ING is one of many European banks that have restricted financing to oil and gas in recent years.
UK banking giant Barclays, Europe's biggest lender to fossil fuel projects, announced in February that it would drop direct funding for new oil and gas projects.
UK's HSBC said that at the end of 2022, it would stop funding new oil and gas field developments and related infrastructure as part of a policy to support and finance a net-zero transition.
France's biggest bank, BNP Paribas, said in May 2023 that it would no longer provide any financing for developing new oil and gas fields, regardless of the financing methods.
Meanwhile, regional banks in North America have been striking more deals to lend money to the oil, natural gas, and coal industry in recent years, while many European lenders have either shrunk financing for fossil fuels or pledged to lower their exposure to the sector.
By Charles Kennedy for Oilprice.com
Charles is a writer for Oilprice.com More