Dutch financial sector: over 80% of investments in energy sector still going to fossil fuels
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 pension funds will not reach the required 1:6 ratio until 2039, insurers not until 2041, and banks not 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 rapidly invest 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.”
Dutch pension funds barely invest in clean energy
A fair few of the Dutch pension funds began phasing our fossil fuel investments over the past years: from 18 billion in 2017 to 8 billion in 2023. Despite this step up, three quarters of their investments in the energy sector still goes to fossil fuels. This is because investments in clean energy remained similar compared to 2017 levels.
Loopholes of banks
Since the Paris Agreement, 79% of bank loans went to fossil fuel companies and only 21% to renewable energy. On top of this, banks support fossil fuel companies increasingly via almost invisible back doors. For example, Dutch banks doubled the underwriting of bonds between 2016-2023. Moreover, the ratio between fossil fuel and renewable financing is much worse for investments of banks. 97% of ING's investments in the energy sector go to oil, gas and coal companies. “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 and insurers Achmea and Menzis are moving in the right direction since over half of their energy portfolio is going to renewables. Achmea’s fossil fuel investments has even halved since 2017 and their investments in renewable energy tripled in during this time.
ENDS
For further enquiries and interview requests, please contact:
Nicky van Dijk, spokesperson for the Fair Finance Guide, via press officer of Milieudefensie, Hanne Poorthuis (0611301420, hanne.poorthuis@milieudefensie.nl).
The Fair Finance Guide - the Netherlands is a collaboration between Amnesty International, Milieudefensie, Oxfam Novib, PAX and World Animal Protection. The research was carried out by Profundo.
