Mar 24, 2022 - Energy & Environment

Banking heavyweight won't fund new oilfields

Illustration of a close up on a suit and tie with the tie made of a hundred dollar bill.

Illustration: Aïda Amer/Axios

Dutch banking giant ING has pledged to cease "dedicated financing" for new oil-and-gas fields.

Why it matters: It's the "biggest bank yet to commit to such a step in the fight against climate change" and could raise pressure on peers, Reuters notes.

Driving the news: ING cited the International Energy Agency's pathway to net-zero emissions by 2050, which includes no approvals of new oilfields as part of a massive and rapid energy transformation.

  • "We will continue to provide financing to clients active in keeping oil and gas flowing to meet the current and declining future demand set out in the IEA’s roadmap," ING said.

Speaking of finance, the CEO of the world's largest asset manager said the response to Russia's unprovoked war on Ukraine will hasten the move to cleaner energy — eventually.

  • BlackRock CEO Larry Fink, in his annual shareholder letter, notes U.S. focus on boosting oil supply and sees European and Asian coal consumption growing over the next year.
  • "This will inevitably slow the world’s progress toward net zero in the near term."

Yes, but: Longer term, Fink sees an accelerant to energy transition as European policymakers look to cut reliance on Russia with increased renewables.

  • He also predicts higher energy prices making cleaner tech even more competitive.
Go deeper