Quote from Alex bobby on June 18, 2025, 6:51 AM

Banks Backtrack on Climate Pledges, Funnel €750 Billion to Fossil Fuel Firms in 2024

In a year marked by record-breaking global temperatures and worsening climate disasters, the world’s largest banks quietly reversed course on their climate pledges—pumping an astonishing €751 billion into fossil fuel companies in 2024 alone. According to the latest Banking on Climate Chaos report, published by a coalition of environmental groups, this surge represents the first increase in fossil fuel financing by major banks since 2021 and signals a troubling retreat from previously stated net-zero goals.

The report reveals that the top 65 global banks collectively provided $869 billion (€751bn) in financing to thousands of oil, gas, and coal companies last year. This is a sharp increase of $162.5 billion (€141bn) from 2023, despite mounting scientific warnings and widespread public pressure to cut ties with high-emission industries.

€6.9 Trillion and Counting Since Paris

Since the 2016 signing of the Paris Agreement, banks have funnelled approximately $7.9 trillion (€6.9tn) into the fossil fuel sector. Much of this funding is channeled toward companies actively expanding oil and gas extraction—precisely the type of growth that experts warn must stop immediately to avoid climate catastrophe.

"Distract, delay, deflect, and finally defect," said Allison Fajans-Turner, Policy Lead at the Rainforest Action Network and co-author of the report. "Banks have used this playbook to keep themselves and the fossil fuel industry flush with cash, while loading the financial system with risk and running out the clock on keeping global temperatures from rising above 1.5°C.”

Who’s Leading the Charge?

American banks remain the largest backers of fossil fuel companies globally, responsible for one-third of total financing in 2024. JPMorgan Chase tops the list with $53.5 billion (€46bn) in financing, followed by Bank of America, Citigroup, Wells Fargo, and Japan’s Mizuho Financial.

In Europe, Barclays once again emerged as the continent’s biggest fossil fuel financier, pouring $35.4 billion (€30.6bn) into the industry. The UK-based bank also ranked among the top four globally for the largest year-over-year increase in fossil fuel lending.

Other European banks were not far behind:

• Santander (Spain): ~$17.3 billion (€15bn)
• BNP Paribas (France): ~$15 billion (€13bn)
• Deutsche Bank (Germany): ~$14.5 billion (€12.6bn)
• HSBC (UK): ~$14 billion (€12bn)

"Many banks have walked away from climate commitments and doubled down on financing fossil fuel expansion, even as global temperatures break records,” said Lucie Pinson, Director of Reclaim Finance.

However, one institution stood out. La Banque Postale of France maintained its strong exclusion policy, providing no funding for oil, gas, or coal producers. It did, however, offer €32 million in financing to three companies involved in fossil fuel-adjacent activities, such as refining and power generation.

Climate Commitments Crumble

The climate finance peak in 2021, following the COP26 summit in Glasgow, saw hundreds of financial institutions—including major banks—sign on to net-zero pledges via the Glasgow Financial Alliance for Net Zero (GFANZ) and the Net Zero Banking Alliance (NZBA). These voluntary agreements committed signatories to achieving net zero emissions across their portfolios by 2050.

But since then, geopolitical turbulence—including conflicts, inflation, and energy security fears—has seen many of those commitments erode. Late last year, six of North America’s biggest banks pulled out of the NZBA, citing concerns over legal and political pressures, especially with the re-election of former U.S. President Donald Trump.

Without mandatory regulation, experts warn, the banking sector will continue to finance the climate crisis. “Only rapid and robust binding government regulation and oversight can make banks change course,” said Fajans-Turner. “Without it, banking on climate chaos will remain the dominant investment strategy, tanking both our economy and our planet.”

Industry Response and Greenwashing Warnings

In response to the report, Barclays issued a statement defending its climate finance efforts: “Barclays provides finance to meet consumer and business energy needs while financing the scaling of clean energy. Last year, we mobilised nearly $100bn (€86.7bn) more Sustainable and Transition Finance than in 2023 and continue to invest £500m (€586m) in climate tech start-ups by 2027.”

Critics, however, warn that such claims amount to greenwashing, especially when offset by massive increases in fossil fuel financing. “Every cruel dollar that still goes to fossil fuels is a death sentence to our climate-vulnerable peoples,” said Gerry Arances, Executive Director of the Center for Energy, Ecology & Development (CEED), referencing the devastating heatwaves across Southeast Asia.

A Critical Juncture

The findings of the Banking on Climate Chaos report highlight a stark contradiction: banks are publicly pledging climate responsibility while simultaneously pouring hundreds of billions into the industries driving the crisis.

As the world braces for even more extreme climate impacts, pressure is mounting for policymakers to step in where voluntary agreements have failed. The window to avert irreversible damage is closing fast—and without firm regulation, the financial sector may continue to prioritise short-term profits over long-term planetary survival.

Conclusion

The latest Banking on Climate Chaos report delivers a sobering reality check: despite climate pledges, the world’s biggest banks are still heavily funding the fossil fuel industry. With €751 billion handed to oil, gas, and coal companies in 2024 alone—during the hottest year on record—banks have clearly prioritised profit over the planet.

While a handful of institutions like France’s La Banque Postale are showing it’s possible to align finance with climate goals, most others are retreating from their net-zero commitments. Voluntary pledges have proven weak and unenforceable, and without legally binding regulation, the trend is likely to continue.

As the climate crisis intensifies, governments must act decisively to hold financial institutions accountable. The future of global climate action may well depend on making banks part of the solution—not the problem.

Meta Description:
A new report reveals that major banks financed €751 billion in fossil fuel projects in 2024, backtracking on climate commitments. Learn which banks are leading—and lagging—in the fight against climate change.