New research by the Dutch Fair Finance Guide reveals that Dutch banks, insurers and pension funds are still heavily investing in fossil fuel companies. Only 16% of investments in the energy sector go to renewable energy and as much as 84% to fossil fuels.

ING and Allianz are the bad apples. ING now finances more fossil fuels than in 2016, just after the Paris Climate Agreement. German insurance company Allianz’s investment portfolio is still 95% fossil fuel and only 5% renewables.

Falling short for the 1:6 ratio in 2030

The International Energy Agency clearly states that for every euro that goes to fossil fuels, 6 euros should go to renewable energy by 2030 if we want to limit global warming to 1.5°C. At the moment, only 20 cents on every euro goes to renewables. Although Dutch financial institutions did become slightly greener since 2016, at this rate banks will not reach the required 1:6 ratio until 2084.

Spokesperson Nicky van Dijk: “With the COP in November and the rising need for climate finance, specifically in the global south, it is crucial that financial institutions invest rapidly more in renewables and phase out fossil fuels. The financial sector is moving at a sluggish pace, while a turning point before 2030 is essential.”

The Netherlands’ biggest bank ING is the bad apple

ING’s financing of fossil fuel companies increased from 3.1 billion in 2016, just after the Paris Climate Agreement, to 4.1 billion in 2023. And while ING’s financing of renewable energy also increased, this is still only a quarter of ING’s energy portfolio.

It is important to not just focus on ING’s lending portfolio. ING’s investments are even more grim: 97% of ING's investments in the energy sector go to oil, gas and coal companies. Also, ING’s underwriting practices for fossil fuel companies have increased massively between 2016-2023. “Through these kind of loopholes, Dutch banks finance fossil fuel companies with billions each year,” says Van Dijk.

Glimmers of hope

Fortunately, there are also some glimmers of hope. The Volksbank and Triodos Bank are fine examples of how things can be done: their energy portfolios are 100% renewable. Rabobank is moving in the right direction since over half of their energy portfolio is going to renewables.

Notes

The Fair Finance Guide - the Netherlands is a collaboration between Amnesty International, Milieudefensie, Oxfam Novib, PAX and World Animal Protection. The research was done by Profundo. 

Read the report here. 

This press release was originally published in Dutch on the Fair Finance Guide Netherlands website here.