ING to align $600bn green investment portfolio with Paris Agreement
Dutch financial institution ING has announced it will be working with the companies in its green investment portfolio, which is worth US$600bn (£456bn), to help them align their sustainability strategies with the Paris Agreement.
A partnership between ING and think tank 2C Investing Initiative (2Cii) will work toward the Paris Agreement’s key goal of keeping the rise in global temperature to below two degrees Celsius.
It will use a set of metrics called Terra to do so. The bank, which is being hailed as the first to use such a science-based approach for its strategic goals, said in a statement: “We are confident that the Terra approach will make a valuable impact because it enables us, and the rest of the banking sector, to finance the change the world needs to move towards a low-carbon economy.
“All banks would benefit from having an industry-wide standard, increasing transparency and therefore our collective effectiveness in fighting climate change.”
Terra metrics will work to tell the organisation what it needs to change across various sectors in order to ensure all clients are working effectively toward climate goals, with ING saying it will “show us whether our lending is adding up to contribute to climate resilience or not”.
Isabel Fernandez, head of wholesale banking at ING, concluded: “We believe the Terra approach will make a real difference. There’s no time to lose.”
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.