A new report has revealed that the world’s biggest banks dramatically ramped up their support for fossil fuels in 2024, reversing years of declining investment and casting doubt on their climate commitments.

According to the 16th annual Banking on Climate Chaos report, the top 65 global banks provided $869 billion (£639 billion) in financing to the fossil fuel industry in 2024. This marks an increase of $162 billion (£120 billion) from the previous year, disrupting a downward trend that began in 2021.

The report, compiled by a coalition of environmental and research groups including Rainforest Action Network, Reclaim Finance, and Oil Change International, analyzed lending and underwriting data from over 2,700 companies involved in fossil fuels. These companies were listed in databases such as Urgewald’s Global Oil and Gas Exit List and Global Coal Exit List, as well as financial platforms like Bloomberg and the London Stock Exchange.

Major Banks Backtrack on Climate Promises

The report highlights a troubling shift among many major financial institutions. US banks, in particular, have pulled back from climate goals following political changes, including the election of Donald Trump in 2023. Several have exited the Net Zero Banking Alliance, the primary climate coalition for the banking sector, and weakened or withdrawn fossil fuel restrictions altogether.

JP Morgan Chase emerged as the largest fossil fuel financier globally, investing $53.5 billion (£39.3 billion) in the sector in 2024. Meanwhile, Barclays took the lead in Europe, providing $35.4 billion (£26.0 billion), and was listed among the top four banks with the biggest increase in fossil fuel financing.

Other UK-based banks also contributed significantly:

• HSBC: $16.2 billion (£11.9 billion)
• NatWest: $2.7 billion (£1.9 billion)
• Lloyds: $1.6 billion (£1.1 billion), a decrease from 2023

Read More: Research: European ESG Funds Invested Over €123B in Fossil Fuels

Fossil Fuel Expansion Still Rising

In spite of repeated warnings from scientists and energy experts, banks continue to finance the expansion of fossil fuels. Since 2021, $1.6 trillion (£1.1 trillion) has gone to companies pushing new fossil fuel projects, including $429 billion (£315 billion) in 2024 alone, an $85 billion (£62 billion) rise from the previous year.

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

This comes despite the International Energy Agency’s (IEA) firm stance that no new fossil fuel projects should be developed if the world hopes to stay within the 1.5°C global temperature limit set by the 2015 UN Paris Agreement.

Growing Criticism from Climate Advocates

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

“Despite their greenwashing and false promises, these banks continue to bankroll the expansion of the fossil fuel industry and the false solutions that deepen climate injustice, land grabbing, and human rights abuse,” said Tom BK Goldtooth, executive director of the Indigenous Environmental Network. 

David Tong of Oil Change International stressed: “In 2025, banks have no excuse to keep financing fossil fuel companies.”

Lucie Pinson, director of Reclaim Finance, added that most banks have now “walked away from climate commitments” and have doubled down on fossil fuel expansion, even as global temperatures hit record highs.

Also Read: Transition Finance: Bridging the Gap Between Fossil Fuels and Net Zero

Calls for Regulation

Environmental groups argue that only legally binding regulations can force banks to align with climate science.

“Even in the face of worsening disasters and increasingly dire warnings of scientists and policy experts, banks actually increased their financing to fossil fuels between 2023 and 2024 and still poured billions into expanded fossil infrastructure,” said Allison Fajans-Turner of Rainforest Action Network.”

The PA news agency has reached out to JP Morgan Chase, Barclays, HSBC, NatWest, and Lloyds for comment.

Follow more news and views via our Environment and Featured Articles sections, and stay updated on top ESG events to attend in 2025 for industry insights and networking.

Source: Alloa Advertiser