Global Banks Surge Funding for Fossil Fuels Amid Climate Crisis
Major financial institutions worldwide have intensified their financial support for fossil fuel enterprises, despite escalating environmental concerns. According to a recent study conducted by an alliance of eight environmental organizations, the largest global banks committed $869 billion in 2024 to companies involved in coal, oil, and gas production. This marks a significant reversal from the declining trend observed in 2021, as two-thirds of the world's top 65 banks increased their funding by $162 billion between 2023 and 2024.
Scientific consensus underscores that no new fossil fuel projects should proceed if catastrophic climate impacts are to be avoided. Last year, marked by record-breaking temperatures and numerous disasters driven by global warming, highlighted the urgency of transitioning to cleaner energy sources. However, many banks have recently weakened or abandoned their pledges to reduce greenhouse gas emissions due to shifting political landscapes, notably with Donald Trump reascending leadership in the United States, who has notoriously dismissed climate science. In February, the U.S. Treasury disengaged from a global banking network aimed at promoting green finance and mitigating climate risks.
The largest contributors to fossil fuel financing last year were predominantly American entities, with JPMorgan Chase leading at $53.5 billion, followed closely by Bank of America and Citigroup. Mizuho Financial of Japan ranked fourth, while Wells Fargo occupied the fifth position. Notably, the most substantial increases in fossil fuel lending originated from leading American institutions alongside Barclays, the British bank. Since the historic Paris climate agreement in 2015, banks have collectively allocated $7.9 trillion towards fossil fuel activities, including drilling projects and pipelines.
In light of these findings, governments must take decisive action to hold financial institutions accountable for their contributions to the climate crisis. While several top financial firms claim adherence to the Paris accord and commitment to addressing climate change, many have reneged on these promises over the past year, even as predictions indicate catastrophic global temperature increases. A few European banks may have made marginal progress, but for most, the allure of lucrative fossil fuel investments remains compelling. The report emphasizes the urgent need for regulatory measures to steer financial practices toward sustainable development and safeguard the planet's future.