The largest bank in the Netherlands will force its customers to go green
On the path to reducing emissions, the Dutch bank Rabobank has made the transition to green energy a central part of its strategy. It is reported by Bloomberg.
As part of its plan, the bank plans to increase financing for the renewable energy sector by 30% per year until 2025. The bank will also start issuing mortgages for more energy-efficient homes and reducing energy intensity. of its managed funds. The Netherlands‘ second-largest bank will force its customers to go green – Rabobank studies its loan portfolio to identify the biggest greenhouse gas emitters and understand their plans to bring their business into compliance with the Paris on the climate. It was signed in 2016 by 175 countries who pledged to limit the increase in temperature on Earth. Banks are faced with a growing need to consider the environmental impact of their loans. Rabobank loans totaling around 100 billion euros have been granted to the agricultural sector, one of the biggest polluters on the planet. It is the objects of agriculture that produce about a quarter of all greenhouse gases in the world, and the volume of these emissions is very difficult to reduce.
The bank’s CEO, Wiebe Dreyer, noted that advisers would now ask borrowers to commit to the targets set out in the Paris climate accord. “If they don’t commit and we don’t see progress, that can lead us to decide that this is not a client with whom we can continue to work,” explains the manager. Over time, Rabobank wants to make its business fully green and improve the energy rating of its mortgage portfolio.
The Dutch financial institution considers natural gas as the best fuel for the transition to green energy. However, the bank also wants to direct the financing of new technologies such as hydrogen production and carbon capture.
Bloomberg estimates that governments and businesses need to invest at least $92 trillion by 2050 to reduce emissions fast enough to avoid the disastrous consequences of climate change. “To create a more sustainable energy supply around the world, huge investments are needed, whether large-scale contributions, investments in infrastructure or joint initiatives of individuals. All this opens up opportunities for the bank,” said Wiebe Dreyer.
The transition to planet-safe energy is also taking place in Russia. Recently, the Center for Financial Calculations estimated the speed of commissioning of renewable energy installations in the country. In 2021, the capacity commissioning plan turned out to be outdated as some sites were only due to start operating next year.