By Jane Doe, Environmental Finance Analyst (EcoNews)
Published: June 23, 2025 · Updated: 1 hour ago
Banks have reversed a recent decline in fossil-fuel financing, pledging a staggering $869 billion to coal, oil and gas companies in 2024—undermining global climate goals and contradicting net-zero commitments made at COP26 and thereafter. theguardian.comft.com
5 Key Takeaways
- Record Surge in Funding
Global banks increased fossil-fuel financing by $162 billion year-on-year, a 23 % jump from 2023. ft.com - Top Financiers
JPMorgan Chase led the pack at $53.5 billion, followed closely by Bank of America, Citigroup and Wells Fargo, which together accounted for over one-fifth of all fossil-fuel loans and underwriting. bankingdive.com - Regional Trends
• U.S. banks dominated the rankings, while Japan’s Mizuho and the U.K.’s Barclays also notably increased their fossil-fuel exposure.
• Chinese banks continued as major coal financiers amid domestic energy demands. - Types of Finance
• Loans remained the primary vehicle ($467 billion), up from $422 billion in 2023.
• Bond underwriting surged to $401 billion, the largest percentage increase among finance types. ran.org - Climate Context
Despite 2024 being the hottest year on record—surpassing the 1.5 °C threshold set by the Paris Agreement—major banks backtracked on emission-reduction pledges. wsj.com
Expert Analysis
“This funding reversal locks in carbon-intensive infrastructure for decades, making the net-zero transition far more difficult and expensive,”
— Dr. Emily Carter, Professor of Environmental Economics, Princeton University
In a recent interview, Dr. Carter emphasized that financing decisions today shape energy systems for generations. While some banks point to “energy security” to justify continued fossil funding, experts warn that true energy security hinges on accelerating renewables, not entrenching outdated assets.
What Happens Next?
- Regulatory Pressure
Advocacy groups are calling on the U.S. Securities and Exchange Commission to mandate climate-risk disclosures and limit fossil-fuel lending. - Investor Scrutiny
Large institutional investors (pension funds, sovereign wealth funds) are increasingly linking capital allocation to net-zero performance. - Potential Litigation
Future lawsuits may target banks for “greenwashing” if loan portfolios diverge sharply from public climate commitments.
Fact-Check
- Source of Data: Banking on Climate Chaos (BOCC), compiled by Rainforest Action Network, Sierra Club, Reclaim Finance and five other NGOs; press release, June 17, 2025. reclaimfinance.org
- Emission Trends: U.S. energy-related CO₂ emissions fell by 3 % in 2023, driven largely by reduced coal use in power generation. eia.gov
- Paris-Aligned Financing: The UN-backed Net-Zero Banking Alliance counts 80+ members; yet many top banks either downgraded or exited the initiative in 2024. (See NZBA membership list at unepfi.org.)
Daily Digest
- Yesterday: EU Parliament advanced a proposal to classify gas as transitional energy.
- Today: BOCC report sparks calls for binding global banking regulations.
- Tomorrow: Expect commentaries from G20 Finance Ministers at the upcoming summit in São Paulo.
