ING Takes Next Step in Aligning Oil & Gas Portfolio With Climate Goals

Dutch multi-banking group ING is expanding its approach to the oil and gas value-chain by restricting dedicated finance to ‘midstream’ (oil & gas infrastructure) activities that unlock new oil and gas fields, also aiming to reduce the volumes of the traded oil and gas it finances.

One year ago, following the net-zero pathway laid out by the International Energy Agency (IEA), ING became the first large global bank to stop providing dedicated finance to new ‘upstream’ (exploration and extraction) oil and gas fields.

The bank said the latest move is part of its Terra approach, which aims to steer the most carbon-intensive parts of its portfolio toward reaching net zero by 2050.

ING said its energy strategy balances 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 to ensure the security of the energy supply.

In a statement, ING said: “To achieve this balance in a society that’s still dependent on fossil fuels, we see it as our role to keep financing what the world needs today, while at the same time supporting the transition to the low-carbon economy of the future.”

By the end of the year, the bank said it wants to adopt a ‘net zero by 2050’-aligned methodology for midstream oil and gas infrastructure such as pipelines, liquified natural gas terminals and storage facilities.

#netzero #decarbonisation