Can ING stop lending to fossil fuels? 4 questions and answers

1. What exactly does Fossielvrij NL expect from ING?

“The climate crisis is here and now. It is unacceptable that our money goes to fossil companies. ING Bank must immediately turn off the money tap for oil, coal and gas,” Fossielvrij NL said in a large advertisement in de Volkskrant. These are new projects.

Fossil-free NL also wants to achieve that we are less dependent on Russia, among other things. Signatories include trade union FNV, broadcaster VPRO, Fietsersbond, Bomenstichting and aid organization Cordaid.

2. How much does ING invest in fossil fuels?

ING has lent a total of USD 55 billion to companies from 2016 to 2021, according to the Banking on Climate Chaos report some environmental organizations. This places ING in 28th place worldwide, according to the organisations.

The list of 60 banks also includes another Dutch bank: Rabobank, which ranks 50th with $10.5 billion in loans between 2016 and 2021. ABN Amro is not in the top 60.

3. Can ING easily stop investing in fossil fuels?

ING can choose not to enter into new contracts, says Martien Visser, lecturer in energy transition at Hanze University of Applied Sciences in Groningen. But then competitors will close the gap, he thinks, “and then you won’t have made much progress.”

“Countries in the Middle East are full of money due to high energy prices. The question is whether it is better for these types of states to fund energy companies, it’s a bit of a no-nonsense tactic. scruple,” he said.

4. How likely are banks like ING to stop investing in fossil fuels?

“I understand the desperation of some young people, but we continue to use incredible amounts of energy and that energy has to come from somewhere,” says Visser.

We must work to replace oil, gas and coal from Russia and we must continue to ensure that we need less energy and that more of the energy we use is renewable , adds RTL climatologist Bart Verheggen.

For example, according to Visser, we will have to reduce energy consumption by insulating houses and other buildings. He also sees more in the campaign “for something, like building more windmills, than against something.”

If you invest less in fossil fuels, prices will rise and we will give money that should actually be used to develop wind and solar energy in Middle Eastern countries, Visser says. He would much rather see fossil fuels compete with an abundance of renewables, thereby driving down prices.

But according to Jilles van den Beukel, an energy expert at The Hague Center for Strategic Studies (HCSS), the oil and gas industry still manages to raise funds for investments. They borrow relatively little money and they can fund investment money from their own profits, says Van den Beukel.

And smaller oil and gas companies, such as those active in the North Sea, are often owned by private equity firms, which are investors who fund companies outside of the stock market, Van den Beukel says. Bank loans are therefore not really necessary.

ING: gradually reduce loans

ING say that he also thinks we should cut fossil fuels, but he says he cannot immediately stop funding the oil and gas sector. Indeed, the company is still “heavily dependent” on oil and gas, according to ING.

In its own words, the bank in 2022 was the first major bank in the world to decide to no longer finance projects for new oil and gas fields.

ING wants to “gradually” reduce loans to the oil and gas sector: by 12% in 2025, by 19% in 2030 and 53% by 2040.