World's biggest banks funneled $906B into fossil fuels last year
What's the story
The world's biggest banks have pledged a staggering $906 billion in financing to the fossil fuel industry last year, a new report has revealed. The amount marks an "unfathomable" increase from 2024, locking in years more of coal, oil, and gas production as global temperatures continue to rise. The report was released by a coalition of environmental groups who say that this trend is incompatible with international agreements aimed at curbing climate change.
Top financiers
JPMorgan Chase tops list of banks financing fossil fuels
JPMorgan Chase has once again emerged as the world's top financier of fossil fuels, according to the annual Banking on Climate Chaos report. The bank pumped in $58 billion into the sector last year, a 13% increase from 2024. It was followed by Bank of America, Japanese banks MUFG and Mizuho Financial, and Citigroup in the top five fossil fuel financiers.
Growing trend
'Troubling trend' in fossil fuel financing, says expert
Caleb Schwartz, a policy analyst at Rainforest Action Network, one of the groups behind the report, expressed concern over the rising trend in fossil fuel financing. He said last year was supposed to be a turning point with a continuous decrease in historical numbers but instead saw an increase. This year too has continued that trend which he termed as troubling.
Increased funding
Major banks increasingly concentrate fossil fuel financing
The report also found that major banks are increasingly concentrating their fossil fuel financing. The so-called 'dirty dozen' are responsible for 40% of all industry funding, with most coming from six jurisdictions: the US, Canada, Japan, China, the UK and European Union. Last year alone, these banks pledged a whopping $508 billion for expanding existing fossil fuel sites, a 27% increase from 2024.
Shifting stance
Banks turn back on previous emissions reduction commitments
Despite previous commitments to cut emissions and limit financing for particularly dirty forms of energy like coal, many banks have now turned their backs on these pledges. This shift comes amid political pressure, especially in the US. Last year, the Net-Zero Banking Alliance, a UN-backed initiative that sought to align banks' lending with net zero emissions by 2050, was disbanded after several high-profile exits from its membership.