ING BANK NV said it will avoid funding projects that rely on coal power, drastically reducing the bank鈥檚 exposure to the non-renewable energy source by 2025.
In a statement on Wednesday, ING said that with immediate effect, it will seek out clients in the utilities sector with under 10% exposure to coal power.
By the end of 2025, it intends to bring this ratio down to 5%. However, the bank will continue to fund non-coal energy projects to support coal-dependent clients transitioning to cleaner energy sources.
鈥淭his is a sharp reduction from the coal policy update that was launched ahead of the Paris Climate Conference in 2015… At that time, we said we鈥檇 no longer finance any new clients whose business is over 50% reliant on operating coal-fired power plants,鈥 the statement read.
Meanwhile, the Dutch bank will phase out its lending to coal-fired power plants by the end of 2025. This is in support to its 2015 decision to refrain from funding that type of power plant, excluding standing commitments.
鈥淲e [realize] that contributing to the Paris Agreement targets is also about making clear choices in what we鈥檒l no longer finance, especially when there are good alternatives available,鈥 ING Vice-Chairman Koos Timmermans was quoted as saying in the statement.
鈥淲e are taking this decisive step as part of our overall ambition to support the energy transition,鈥 he added.
ING has been supporting sustainable energy projects as well as those seeking to mitigate climate change.
The bank has provided financial support for renewable energy projects worth 鈧29 billion, in addition to 鈧4 billion in direct loan exposure to renewables at end-November. This amounts to 60% of ING鈥檚 total utilities sector portfolio.
ING served as the lead arranger for the 150-megawatt Burgos Wind Farm in Ilocos Norte in 2014. 鈥 Karl Angelo N. Vidal
