EmerioBanque

ING Rigids Oil And Gas Funding To Include Trade Finance, Midstream

Recently, Dutch lender, ING announced that it has again hardened its lending policy to the oil and gas sector, limiting funding to clients indulged in commodity or trade finance and “midstream” infrastructure.

ING, a main provider of commodity finance, declared it was attempting to pursue a methodology to further limit the volumes of traded oil and gas it provided funding in line with global environmental goals to further set targets by 2024.

Commodity trade finance covers several types of loans with most of them for less than a year, providing international movement of goods from wheat to gasoline. Till now, none of the largest TCF banks have brought climate-related limitations to this part of its lending book, stated ING, except Rabobank. 

The aforesaid initiative of the bank to resilient its activity demonstrates the fact that the world should be less vulnerable and dependent on oil and gas - and is a sizeable portion of ING’s exposure to the sector - Anne-Sophie Castelnau, global head of sustainability stated.

Recommended Read: Starsight Gets Increased Funding For Hybrid Solar Solutions In Nigeria And Ghana

“By carrying out our endeavors in this direction, we’re conveying a message to our clients that we are effectively participating in making moves towards decarbonising our portfolio and dynamically getting out of that industry.” She added.

ING stated that it would look to decrease the emissions associated with the volume of traded oils and gas it funds by 19% by 2030, in line with the international Agency's Net-Zero Emissions by 2050 Roadmap.

ING also added that it will no longer facilitate dedicated finance to “midstream” infrastructure initiatives such as processing and stockpiling that helps new oil and gas fields to be created.

The bank’s financing to midstream oil and gas was about $14 billion at the end of 2022, with about 10% of that associated with new oil and fields and therefore covered by the new targets, Castelnau stated.

Recommended Read: Climate Change Activities Can Accelerate Global Economy, Economist Says

Last year, ING explained, it would not facilitate dedicated upstream finance to new oil and gas fields. Its openness to this section was recorded at 3.1 billion euros at the end of 2021.

“The idea is to consider feedback from the International Energy Agency (IEA) that the world doesn’t require new oil fields.” Castelnau stated.





Other news

Exchange Rates

Currency Buy Sell
EUR USD 1.06 1.10
EUR GBP 0.86 0.89
EUR CHF 1.02 1.06
EUR AUD 1.72 1.70
EUR JPY 116.08 116.56
EUR MYR 4.50 4.77
EUR SGD 1.53 1.57
EUR HKD 8.27 8.53
EUR CAD 1.54 53.84
EUR DKK 9.75 1.55

Most Recent Blogs View All Blogs

08 Feb

Blockchain's Impact on Trade Finance: Shaping Global Commerce

Trade financing facilitates global commerce but involves antiquated systems reliant on manual paperw...

06 Feb

India's Trade Dynamics Amidst the Red Sea Crisis

As of now, there has been no significant impact on India's exports and imports owing to the crisis i...

31 Jan

Choosing the Right Trade Finance Instrument for Your Business

Understanding Trade FinanceTrade finance facilitates transactions and lowers risks for buyers and se...

Disclaimer

Emerio Banque is an innovative global financial institution incorporated in England and Wales with Legal Entity Identifier 875500DGPPWAFABBK130. Emerio Banque does not offer its products and services to businesses and/or persons registered in the United Kingdom.

No information on this website should be construed as a solicitation, offer, recommendation, and representation of suitability or endorsement of any security, investment or strategy.

Important Notice

Emerio Banque would like to advise its customers to report any suspicions which they may have regarding the identity of any intermediary who promotes products or services offered by us or any intermediary bearing similar names. You should verify with Emerio Banque by calling our Customer Service Number on +44 203 059 7831 or emailing help@emeriobanque.com

Please also be aware of bogus SMS messages and voice message calls or fraudsters who impersonate the staff of Emerio Banque.

We have recently become aware of a number of entities with different names misrepresenting themselves as associates, partners or agents of Emerio Banque.

Please be informed that Emerio Banque is not associated with nor do we have any business connections or dealings with such institutions.

Emerio Banque takes all information regarding suspicious fraudulent activity very seriously. Please immediately inform us at compliance@emeriobanque.com if you suspect or are approached by persons misrepresenting or impersonating Emerio Banque and/or its officials. We will make investigations and will take legal action where necessary.