Dutch Lender ING Tightens Financing for High-Carbon Buildings

ING Groep NV, a leading provider of property loans in Europe, says it has significantly tightened funding terms for owners of high-carbon office buildings, a move that may add to the challenges facing the continent’s struggling commercial real estate market.

“If your building isn’t complying with an energy label or you don’t have a transition plan, we won’t finance you,” said Hein Wegdam, head of real estate finance for the ING division that lends to small and mid-size businesses, in an interview. “We’re more cautious and more mindful of managing those risks.”

With €49 billion ($53 billion) of ...