World’s largest banks pledged $906bn to fossil fuel companies in ‘unfathomable’ increase in 2025, report finds
World’s Largest Banks Pledge $906bn to Fossil Fuels in 2025, Report Finds
Record Financing Bolsters Fossil Fuel Expansion Despite Climate Commitments
World s largest banks pledged 906bn - A report reveals that the world’s top banks collectively funneled $906 billion into fossil fuel companies in 2025, marking a significant surge in financial backing. This amount represents an 8% increase from 2024, underscoring the sector’s persistent dominance in global capital flows. The funding not only supports ongoing oil, gas, and coal operations but also fuels new projects, raising concerns about the banks’ alignment with climate goals. The analysis, conducted by environmental advocates, highlights a growing gap between financial institutions’ pledges to sustainability and their actual investments in high-emission industries.
“Last year was the first year where we were hoping to see a continuous decrease in historical numbers, but we actually saw that increase and then that continues this year,” said Caleb Schwartz, a policy analyst at Rainforest Action Network. “So it’s a troubling trend.”
The report attributes this funding surge to the continued expansion of fossil fuel projects, with institutions allocating $508 billion to new drilling and extraction initiatives. This 27% rise from 2024 indicates the sector’s resilience, even as climate pressures mount. Among the top recipients were three U.S. energy firms—Venture Global, Enbridge, and Energy Transfer—that collectively absorbed the bulk of the financial inflow, further cementing their influence in the global energy landscape.
Concentration of Power in the “Dirty Dozen”
The report also identifies a concentration of fossil fuel financing within a select group of institutions, referred to as the “dirty dozen” by environmental experts. These banks account for 40% of all industry funding, with operations spanning six key regions—United States, Canada, Japan, China, the United Kingdom, and the European Union. While 26 of the 65 largest banks reduced their lending to fossil fuels in 2025, the overall increase demonstrates the sector’s entrenched position in financial systems worldwide.
“The fossil fuel incumbents are not going out with a whimper,” remarked Niko Lusiani, a climate and energy expert. “They are doubling down to expand an increasingly fragile, unreliable, risky energy system.”
JPMorgan Chase led the way, providing $58 billion in fossil fuel financing—a 13% rise from the prior year. This places the bank at the forefront of the sector’s financial support, with Bank of America and Japanese banks MUFG and Mizuho Financial trailing closely. The report underscores the need for stricter oversight, as voluntary measures have failed to curb the scale of investments undermining climate change mitigation efforts.
Political and Economic Drivers Behind the Pledge
The analysis points to political shifts and economic incentives as key factors behind the $906bn pledge. With Donald Trump’s influence resurging in the U.S., several banks have reversed environmental commitments, prioritizing fossil fuel projects over renewable energy. This aligns with the broader trend of financial institutions supporting industries that align with short-term profitability, even as long-term climate targets remain unmet.
“As one of the world’s largest financiers of energy, we support the full range of energy solutions and technologies, with a focus on reliability, affordability, security and long-term resilience,” said a JPMorgan Chase spokesperson. “We believe our data reflects our activities more comprehensively and accurately than estimates by third parties.”
The recent rise in oil and gas prices following the US and Israel’s attack on Iran has also bolstered profits for major energy firms, reinforcing their financial incentives. Despite the 2050 net-zero emissions goal, the World’s largest banks pledged 906bn in 2025, enabling fossil fuel expansion at a pace that scientists warn could push global heating past the 1.5°C threshold set by the Paris Agreement.
Global Climate Targets Under Threat
Scientists emphasize that the World’s largest banks pledged 906bn in 2025 could significantly hinder progress toward the 1.5°C target. To achieve this, emissions from fossil fuels must be nearly eliminated, yet the banks’ cumulative $8.7 trillion investment since the agreement’s adoption has kept the industry afloat. The report calls for stronger regulatory action, arguing that current voluntary measures are insufficient to meet international climate commitments.
Environmental groups are urging policymakers to mandate reduced financing for coal and other high-emission sources, stressing that the $906bn pledge reflects a lack of urgency. The findings highlight the contradiction between the World’s largest banks pledged 906bn and the need for immediate transitions to cleaner energy, as the financial sector continues to prioritize traditional fuels over sustainable alternatives.