While transition pathways call for a sustained reduction in emissions, 2024 marks a notable reversal. Major global banks increased their financing of fossil fuels by 23% year-over-year, reigniting the debate over the credibility of the financial sector’s climate commitments.
A Strong Comeback for Fossil Fuel Financing
According to the report Banking on Climate Chaos, published in mid-June by a consortium of eight international NGOs, $869 billion was allocated in 2024 to the oil, gas, and coal sectors. This represents an increase of $140 billion compared to 2023, erasing two years of decline and bringing volumes close to the 2021 peak.
This financing, primarily in the form of loans, bonds, or equity offerings, supported not only day-to-day operations but also the expansion of fossil fuel projects—despite these being identified as incompatible with the goals of the Paris Agreement.
U.S. banks lead the way, against a backdrop of climate divestments
U.S. institutions largely dominate this resurgence, accounting for 33% of the total amount ($289 billion). Among them, JPMorgan Chase, Bank of America, and Citigroup rank at the top of the list, alongside Goldman Sachs and Wells Fargo.
This resurgence of hydrocarbons also comes amid a retreat from climate alliances, such as the Net Zero Banking Alliance, which some U.S. banks have left under political pressure, fearing lawsuits for “climate collusion” in the United States.
French banks show moderate but significant growth
The six major French banks have also increased their support for the sector: $49.6 billion in fossil fuel financing in 2024, compared to $41.6 billion the previous year, representing a 19.2% increase. The most notable increases are:
BNP Paribas (+€2.9 billion)
BPCE (+€2.8 billion)
Société Générale (+€1.6 billion)
The report also highlights that four major French banks have specifically allocated €17.3 billion to fossil fuel expansion projects, despite their climate commitments. BPCE is singled out as the French institution with the most concerning trends—a finding the group strongly disputes.
Interest rates, political climate, and signs of a shift
This uptick is partly due to the drop in interest rates observed in 2024, which made it easier for companies in the sector to take on debt. But it also reflects a more polarized political and regulatory landscape, particularly in the United States, where green finance faces growing resistance.
This paradox comes even as 2024 crossed, for the first time, the critical threshold of 1.5°C of global warming—highlighting the persistent gap between climate rhetoric and financial flows.
Coming up: five key trends to watch
Asian, Canadian, and European banks account for the remainder of the financing: 14% for China, 12% for Japan, and 15% for Canada.
Two-thirds of the 65 banks analyzed increased their fossil fuel financing compared to 2023.
The report calls for greater transparency on blended financing (transition/expansion), which remains largely unregulated.
Some institutional investors are now introducing exclusion criteria for fossil fuel expansion projects in their tenders.
Climate-related resolutions at shareholder meetings are on the rise, reflecting growing shareholder pressure on major banks.
