Amsterdam-based global bank ING announced on Thursday a series of updates to its policy for energy financing, including an immediate end to all new general financing – including corporate financing and bonds – to pure-play upstream oil and gas companies that continue to open new oil and gas fields.

The new policy was unveiled as part of the release of ING’s Climate Progress 2024 report, an update on the bank’s progress in engaging with clients to help them in their transition to a low carbon economy, and on its “Terra approach,” ING’s strategy to steer the most carbon-intensive parts of its portfolio towards reaching net zero by 2050.

As part of its new policy for energy financing, ING also announced today that the bank will stop providing new financing for new LNG export terminals after 2025.

The update forms the latest in a series of stricter fossil fuel financing conditions and policies put in place over the past few years by ING. In March 2022, the bank announced that it will no longer provide new dedicated upstream finance for oil and gas fields, and a year later, ING introduced plans to introduce new funding restrictions targeting oil and gas infrastructure, and to reduce the volume of traded oil and gas financed in its Trade and Commodity Finance business. In December 2023, ING announced a commitment to end its lending for oil and gas exploration and production by 2040, in addition to setting a new target to triple financing for renewable power generation by 2025.

In addition to the new fossil fuel financing restrictions, ING also announced that it has started assessing the climate transition progress of its clients, using a new tool that it has developed, ESG.X, that examines publicly disclosed company climate data, including companies’ current emissions and targets, and whether the companies have action plans, governance and strategy in place. The bank said that in 2026, following 2 years of disclosure assessments and engagements, it will have a more robust understanding of client’s progress, adding that for those “unable or unwilling to progress,” ING will apply stricter conditions on the types of business that it does with those clients on a case-by-case basis, including potentially ceasing financing them entirely.

ING also said that it has expanded its Terra approach to the aluminum and dairy sectors, with twelve sectors now covered by its strategy to steer its portfolio towards global climate goals. Of the sectors now under coverage, ING noted that eight are almost on track to meet climate goals on time, while two sectors are behind schedule, and two can’t yet be assessed due to the use of a new methodology.

Steven van Rijswijk, CEO of ING, said:

“The urgency of climate change is becoming more evident all the time and ING wants to play a leading role in accelerating the global transition to a low-carbon economy. We all have a part to play, and we can all make the difference for present and future generations if we work together towards the same goals.”