ING stops financing pure-play upstream firms with new oil and gas fields

The Netherlands’ biggest bank, ING, is further curtailing 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 restrictions on fossil fuel financing in recent years, revealed new steps in its energy financing policy in its Annual Climate Progress Update 2024, published on Thursday.

“We will stop any new blanket funding to so-called pure-play upstream oil and gas companies that continue to develop new oil and gas fields,” the bank said. This policy applies with immediate effect and includes general corporate funding and bonds.

ING also announced a next step in LNG, driven by International Energy Agency (IEA) guidance, 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 limited oil and gas financing in recent years.

British banking giant Barclays, Europe’s biggest lender to fossil fuel projects, announced in February that it would stop directly financing new oil and gas projects.

Britain’s HSBC said it will stop financing new oil and gas field developments and related infrastructure at the end of 2022 as part of a policy to support and finance the transition to net zero.

France’s largest bank, BNP Paribas, said in May 2023 that it would no longer offer any financing for the development of new oil and gas fields, regardless of the financing methods.

Meanwhile, regional North American banks have done more deals to lend money to the oil, gas and coal industries in recent years, while many European lenders have either scaled back fossil fuel financing or pledged to reduce exposure to this sector.

By Charles Kennedy for Oilprice.com

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