Dutch multinational banking and monetary providers company ING is halting the funding of upstream oil and fuel firms.
In its Local weather Progress Replace 2024, ING mentioned it is going to “cease all new normal financing to so-called pure-play upstream oil and fuel firms that proceed to develop new oil and fuel fields,” efficient instantly.
The financial institution additionally mentioned that it has determined to cease offering new financing for brand new liquefied pure fuel (LNG) export terminals after 2025, guided by the IEA World Vitality Outlook 2023.
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This follows ING’s announcement in December 2023 that it might be phasing out the financing of upstream oil and fuel to zero by 2040, in addition to setting emissions depth targets to succeed in net-zero-by-2050 targets.
“I’m proud to see our local weather method carry on growing yearly,” ING CEO Steven van Rijswijk mentioned. “Up to now 12 months, we’ve taken a number of necessary steps to sharpen the way in which we interact with shoppers on their transition in direction of net-zero. We assessed the sustainability disclosures of round 2,000 of our largest shoppers with a web based instrument we’ve developed. This offers us the inspiration for extra data-informed discussions with our shoppers about their progress and the way we will help them of their transition and drive down their emissions. The urgency of local weather change is turning into extra evident on a regular basis and ING needs to play a number one function in accelerating the worldwide transition to a low-carbon economic system. All of us have an element to play, and we will all make the distinction for current and future generations if we work collectively in direction of the identical targets”.
ING reiterated its longstanding Environmental and Social Threat (ESR) insurance policies for the power sector, wherein it mentioned it doesn’t finance actions within the exploration, growth and manufacturing of oil sands, together with pipeline infrastructure devoted to the unique use of transporting oil from oil sands and the buying and selling of crude oil derived from oil sands.
The financial institution is also in opposition to financing actions for the exploration, growth and manufacturing of shale fuel in Europe; exploration, growth and manufacturing and buying and selling of oil and fuel within the Amazon in Ecuador and Peru; and Arctic offshore and onshore oil and fuel exploration and manufacturing.
In the meantime, ING mentioned it has a Hydrocarbons & New Energies crew that’s centered on the worth chains of three key areas. The primary space is low-carbon (or sustainable) fuels, comprising e-fuels and biofuels like hydrogen, ammonia, biomethane and sustainable aviation gasoline (SAF). Many of those sustainable fuels keep away from further carbon dioxide (CO2) emissions as these are produced from non-fossil-based feedstock, like inexperienced hydrogen or bio-waste.
The second space of focus is recycled feedstock options for plastic manufacturing by means of chemical recycling, akin to by means of pyrolysis). “The produced hydrocarbons from this recycling course of at the moment are blended in, however can finally totally exchange the fossil-based feedstock,” ING famous within the report.
The third space is carbon seize and storage options (CCS), together with CO2 seize in industrial areas and storing in depleted fuel fields or aquifers.
To contact the creator, electronic mail rocky.teodoro@rigzone.com
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