Financial institutions continue to demonstrate a preference for investments in traditional hydrocarbon resources
In a concerning development for the global energy transition, major banks have significantly increased their fossil fuel financing by $162.5 billion in 2024, according to recent reports[1][2][3]. This surge in investments, which totalled $869 billion, was committed by the 65 largest banks worldwide, with 45 banks boosting their coal, oil, and gas financing compared to 2023.
The top four U.S. banks - JPMorgan Chase, Bank of America, Citi, and Wells Fargo - were responsible for about 21% of this global fossil fuel financing, collectively pledging substantial sums, with JPMorgan Chase leading at around $53.5 billion followed by Bank of America and Citigroup[1][2][4].
This increase also included a dramatic rise in financing for fossil fuel production and infrastructure expansion, amounting to approximately $429 billion, highlighting banks' support not just for existing fossil fuel companies but also for expanding fossil fuel infrastructure[2].
The implications for the energy transition are concerning. This surge in fossil fuel financing threatens to stall progress in the shift towards renewable energy and undermine global efforts to meet climate goals set by agreements like the Paris Agreement.
It reflects the limitations of voluntary climate commitments by banks, as many institutions have backtracked or retreated from pledges made in recent international climate talks such as COP26. Experts emphasize the need for stronger government regulation and civic action to counterbalance ongoing financial support for fossil fuels and to ensure a more decisive transition to low-carbon energy sources.
The continued investment in fossil fuel expansion directly contradicts advice from leading climate authorities, such as the International Energy Agency, which advocate against new fossil fuel development to limit global warming[1][3][4].
Lucie Pinson, the executive director of the French advocacy group Reclaim Finance, argues that banks need more regulation to align their activities with the long-term decarbonization commitments that European countries still have[5]. The data shows that banks are unwilling to act sufficiently on climate on their own, she states.
The increase in fossil fuel financing was partially due to lower interest rates, making it more attractive for borrowing. However, the continued support for fossil fuels is a significant challenge to the global energy transition efforts, underscoring the urgency for binding policies and stronger oversight to redirect financial flows towards sustainable energy alternatives.
References: [1] Reuters, "Global banks boosted fossil fuel financing in 2024, data shows," 2025. [2] Financial Times, "Fossil fuel financing surges at major banks in 2024," 2025. [3] The Guardian, "Global banks increase fossil fuel financing by $162.5bn in 2024," 2025. [4] Bloomberg, "JPMorgan Chase Leads Top U.S. Banks in Fossil Fuel Financing," 2025. [5] Reuters, "Pinson: Banks need regulation to align with long-term decarbonization," 2025.
Environmental science experts are alarmed by the surge in investing in the fossil fuel industry, with major banks collectively committing $869 billion in financing in 2024, an increase of $162.5 billion compared to the previous year. This rise in finance for fossil fuels is concerns because it threatens the progress of the energy transition and undermines global efforts to meet climate change goals, such as those set by the Paris Agreement. There is an urgent need for stronger government regulation and civic action to redirect financial flows towards sustainable energy sources, as the continued investment in fossil fuel expansion directly contradicts the advice of leading climate authorities.
