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$11 Trillion Investor Group Urges Members Not To Fund New Oil And Gas Projects

The Net-Zero Asset Owner Alliance, a group made up of members from the banking, insurance, and investment sectors with $11 trillion of assets under management, called on its members on Wednesday to align their oil and gas policies to a 1.5-degree Celsius pathway, which cannot be achieved if there are new upstream infrastructure investments in new oil and gas fields.

"On private asset investment in new unabated oil and gas infrastructure, investors, including Alliance members, shall align with credible 1.5°C net zero scenarios. This cannot be achieved if there are new upstream infrastructure investments in new oil and gas fields," the alliance said in a statement.

The alliance, in which 85 major banks and institutional investors are represented, issued a new position on the oil and gas sector today, expecting its member investors to adopt policies that align with these positions on infrastructure investments, or show how existing policies already align.

The investor group also called on oil and gas producers and their customers to set science-based, absolute- and intensity-oriented emissions targets covering Scope 1, 2, and 3 greenhouse emissions that are aligned with 1.5°C or limited overshoot scenarios.

"How energy is provided and consumed must therefore dramatically change. This includes the need to phase out non-renewable sources like oil and gas in many, if not most, of its current uses," said Günther Thallinger, Allianz SE Board Member and Chair of the Net-Zero Asset Owner Alliance.

Under pressure from ESG trends and shareholders, some banks have announced in recent months tougher rules on the financing of fossil fuels.

ING, for example, is further restricting financing to the oil and gas industry, reducing the volume of traded oil and gas it finances and no longer financing midstream infrastructure for new oil and gas fields, the Netherlands-based bank said earlier this month. Last year, ING said it would aim to grow new financing of renewable energy by 50% by year-end 2025 and would no longer provide dedicated finance to new oil and gas fields.

Barclays has said it will no longer provide financing to oil sands companies or oil sands projects and tightened conditions for thermal coal lending in an updated policy, which fell short of announcing overall pledges or targets in funding oil and gas. 

By Tsvetana Paraskova for

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Tsvetana Paraskova

Tsvetana is a writer for with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.  More


  • Ross Keeler - 29th Mar 2023 at 4:47pm:
    One of the main arguments against cutting off funding for oil and gas projects is that it can lead to energy shortages and higher energy prices. Oil and gas currently account for a significant portion of the world's energy supply, and cutting off funding for these projects could result in a shortfall of energy. This could lead to increased competition for the remaining energy sources, which could drive up prices and make energy less affordable for individuals and businesses.
  • Mamdouh Salameh - 29th Mar 2023 at 10:25am:
    They are wasting their time and would be missing opportunities for investment in the world’s most profitable industry.

    The highest return on their investment is upper most in investors’ choice of where to invest. That is why they will always invest in the global oil and gas industry.

    Oil and gas will continue to drive the global economy throughout the 21st century and probably far beyond, Therefore, investors have to accept this reality and steer their investments accordingly.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert
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