Essay by Eric Worrall

First published JoNova; Just under $900 billion loans to fossil fuel projects in 2024.

Global Banks Increase Fossil-Fuel Funding as Climate Pledges Crumble

New report shows that banks poured nearly $900 billion into financing coal, oil and gas projects in 2024

By Elena Vardon
June 17, 2025 10:18 am ET

Global banks significantly increased their financing for coal, oil and gas projects last year, according to a new report by climate advocacy groups, marking a reversal at a time when lenders are backtracking on climate pledges.

The world’s largest lenders committed $869.4 billion to companies conducting business in fossil fuels in 2024, according to the “Banking on Climate Chaos” report published on Tuesday. This was 23% higher than the previous year and is equivalent to the gross domestic product of Switzerland. The report, which is in its 16th edition, is coauthored by a group of nonprofit organizations including the Rainforest Action Network and the Sierra Club.

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U.S. lenders continue to dominate as the largest financiers: JPMorgan Chase led the pack providing $53.5 billion in funding last year, and was followed by Bank of Americawith $46.0 billion and Citigroup with $44.7 billion. 

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“Without binding regulation, banking on climate chaos will remain banks’ dominant investment strategy, tanking our economy and our planet,” said Allison Fajans-Turner, policy lead at the Rainforest Action Network. 

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Read more: https://www.wsj.com/articles/global-banks-increase-fossil-fuel-funding-as-climate-pledges-crumble-9bbafce4

The “Banking on Climate Chaos” report, authored by the Sierra Club, Rainforest Alliance and a handful of other green groups, is available here.

US banks appear to be leading the charge.

Interestingly this US surge in fossil fuel investment predates President Trump’s second term victory, so it must have been driven by rock solid demand – demand so great, banks were willing to risk the wrath of the Biden administration to satisfy customer requirements. Perhaps as WUWT predicted, the AI surge was undermining the climate movement, even before President Trump won office.

If you are interested in why AI requires so much energy that it is overturning long standing political alliances and upending global energy roadmaps, this article delves into the details.

Sadly it is not all good news. As a recent WUWT article indicates, way too much money is still being squandered on renewables – despite the dismal returns on those investments, both in terms of return on investment and in terms of additional grid capacity.

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