economy
World’s largest banks pledged $906bn to fossil fuel companies in ‘unfathomable’ increase in 2025, report finds
JPMorgan Chase leads 65 banks making decisions incompatible with restraining rising temperatures, researchers say
TL;DR
- The world's 65 largest banks committed $906 billion in financing to the fossil fuel industry last year, an increase of nearly 8% from 2024.
- JPMorgan Chase was the leading financier, providing $58 billion, followed by Bank of America, MUFG, Mizuho Financial, and Citigroup.
- This increased investment is considered incompatible with international agreements to limit global temperature rise.
- Since the Paris agreement, banks have provided $8.7 trillion to the fossil fuel industry.
- Fossil fuel lending is becoming concentrated among a few large institutions, with the "dirty dozen" responsible for 40% of industry funding.
- 26 out of the top 65 banks reduced their fossil fuel financing, with European banks leading the reductions.
- Banks have shifted away from environmental commitments amid political pressure, particularly in the US.
- The era of voluntary commitments has not worked, indicating a need for more active roles from financial regulators and policymakers.