Global Banks Increase Fossil Fuel Funding Despite Climate Goals

The world’s largest banks provided $906 billion in financing to the fossil fuel industry last year, according to a new report. This is a significant increase of $64 billion, or nearly 8%, compared to 2024. This trend is causing concern among environmental experts who say these decisions make it nearly impossible to meet international agreements aimed at stopping global temperatures from rising further.

The report, titled Banking on Climate Chaos, identifies JPMorgan Chase as the world’s leading financier of fossil fuels. The bank provided $58 billion to the sector last year, which is a 13% increase from the year before. Other major banks, including Bank of America, Japan's MUFG and Mizuho Financial, and Citigroup, were also among the top five providers of funding. Barclays was identified as the highest-ranked British bank on the list.

In 2015, countries signed the Paris climate deal, an agreement to keep global heating below 1.5 degrees Celsius. Scientists warn that going above this level will lead to more dangerous heatwaves, floods, and droughts. To avoid this, the world must move away from burning coal, oil, and gas. However, since the Paris agreement was signed, the world’s largest banks have provided $8.7 trillion to the fossil fuel industry to help them find and drill for more energy resources.

Caleb Schwartz, a policy analyst at the Rainforest Action Network, expressed disappointment with the findings. He noted that many people hoped to see a steady decrease in these numbers. Instead, the trend is moving in the opposite direction. “It’s a troubling trend,” he said. The report also found that a small group of banks, referred to as the “dirty dozen,” are responsible for 40% of all industry funding. Most of this money comes from banks based in the US, Canada, Japan, China, the UK, and the European Union.

In response to these findings, a spokesperson for JPMorgan Chase stated that the bank supports a wide range of energy solutions. They emphasized that their focus is on reliability, affordability, and energy security. The spokesperson added that their own internal data provides a more accurate picture of their activities than the estimates provided by outside groups.

There is some evidence of change, however. The report noted that 26 of the top 65 banks actually reduced their fossil fuel financing last year. European banks such as BNP Paribas, UBS, and La Caixa were highlighted for leading these reductions. Despite this, the overall amount of money going into the expansion of new fossil fuel sites remains very high. Banks pledged $508 billion for the expansion of existing projects last year, which is a 27% increase.

Niko Lusiani, a climate and energy expert who helped edit the report, believes that fossil fuel companies are not giving up easily. He argued that these companies are working hard to expand an energy system that is becoming increasingly fragile and unreliable. As the global cost of oil and gas has risen following recent conflicts in the Middle East, many fossil fuel companies have reported record profits. This has encouraged them to continue their operations rather than shifting toward cleaner energy sources.

As the world continues to face record-breaking temperatures, the role of banks remains a central point of debate. Environmental groups argue that banks must stop funding new projects if the world is to avoid the worst effects of climate change. Meanwhile, the banks maintain that they must balance climate goals with the need to provide energy to the global economy. With the 1.5-degree limit expected to be reached soon, the pressure on these financial institutions to change their policies is likely to grow.