Fossil Fuel Financing by Banks Rose Sharply in 2024

A brand new report has revealed that the world’s greatest banks dramatically ramped up their help for fossil fuels in 2024, reversing years of declining funding and casting doubt on their local weather commitments.

In accordance with the sixteenth annual Banking on Local weather Chaos report, the highest 65 world banks supplied $869 billion (£639 billion) in financing to the fossil gas business in 2024. This marks a rise of $162 billion (£120 billion) from the earlier 12 months, disrupting a downward development that started in 2021.

The report, compiled by a coalition of environmental and analysis teams together with Rainforest Motion Community, Reclaim Finance, and Oil Change Worldwide, analyzed lending and underwriting knowledge from over 2,700 corporations concerned in fossil fuels. These corporations have been listed in databases similar to Urgewald’s International Oil and Gasoline Exit Listing and International Coal Exit Listing, in addition to monetary platforms like Bloomberg and the London Inventory Trade.

Main Banks Backtrack on Local weather Guarantees

The report highlights a troubling shift amongst many main monetary establishments. US banks, particularly, have pulled again from local weather targets following political adjustments, together with the election of Donald Trump in 2023. A number of have exited the Internet Zero Banking Alliance, the first local weather coalition for the banking sector, and weakened or withdrawn fossil gas restrictions altogether.

JP Morgan Chase emerged as the biggest fossil gas financier globally, investing $53.5 billion (£39.3 billion) within the sector in 2024. In the meantime, Barclays took the lead in Europe, offering $35.4 billion (£26.0 billion), and was listed among the many high 4 banks with the largest improve in fossil gas financing.

Different UK-based banks additionally contributed considerably:

• HSBC: $16.2 billion (£11.9 billion)

• NatWest: $2.7 billion (£1.9 billion)

• Lloyds: $1.6 billion (£1.1 billion), a lower from 2023

Learn Extra: Analysis: European ESG Funds Invested Over €123B in Fossil Fuels

Fossil Gasoline Enlargement Nonetheless Rising

Regardless of repeated warnings from scientists and power consultants, banks proceed to finance the growth of fossil fuels. Since 2021, $1.6 trillion (£1.1 trillion) has gone to corporations pushing new fossil gas initiatives, together with $429 billion (£315 billion) in 2024 alone, an $85 billion (£62 billion) rise from the earlier 12 months.

Loans remained the dominant type of financing, rising from $422 billion (£310 billion) in 2023 to $467 billion (£343 billion) in 2024.

This comes regardless of the Worldwide Power Company’s (IEA) agency stance that no new fossil gas initiatives must be developed if the world hopes to remain inside the 1.5°C world temperature restrict set by the 2015 UN Paris Settlement.

Rising Criticism from Local weather Advocates

Local weather campaigners are condemning what they describe as blatant greenwashing and regulatory inaction.

“Regardless of their greenwashing and false guarantees, these banks proceed to bankroll the growth of the fossil gas business and the false options that deepen local weather injustice, land grabbing, and human rights abuse,” mentioned Tom BK Goldtooth, government director of the Indigenous Environmental Community. 

David Tong of Oil Change Worldwide careworn: “In 2025, banks don’t have any excuse to maintain financing fossil gas corporations.”

Lucie Pinson, director of Reclaim Finance, added that the majority banks have now “walked away from local weather commitments” and have doubled down on fossil gas growth, at the same time as world temperatures hit document highs.

Additionally Learn: Transition Finance: Bridging the Hole Between Fossil Fuels and Internet Zero

Requires Regulation

Environmental teams argue that solely legally binding laws can power banks to align with local weather science.

“Even within the face of worsening disasters and more and more dire warnings of scientists and coverage consultants, banks truly elevated their financing to fossil fuels between 2023 and 2024 and nonetheless poured billions into expanded fossil infrastructure,” mentioned Allison Fajans-Turner of Rainforest Motion Community.”

The PA information company has reached out to JP Morgan Chase, Barclays, HSBC, NatWest, and Lloyds for remark.

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