Fossil Fuel Investments Rise as Global Banks Reverse Course

After years of declining funding, global banks increased fossil fuel financing by $162.5 billion in 2024.

In 2024, major international banks reversed course and increased their investments in fossil fuel projects, contradicting the decreasing trend of the past two years. The largest banks in the world increased their financial backing for the fossil fuel industry by about $162.5 billion in 2024 compared to 2023, according to the most recent 'Banking on Climate Chaos' report.

The report by climate groups, such as Rainforest Action Network, Sierra Club, and Reclaim Finance, highlights that in 2024, the 65 major global banks gave a total of $869 billion to fossil fuel companies, with 45 of these banks providing more money for fossil fuels compared to the previous year. Additionally, 21% of global fossil fuel funding came from major U.S. banks, including JPMorgan Chase, Bank of America, Citi, and Wells Fargo. Caleb Schwartz, a senior research strategist at RAN and co-author of the report, said 2024 was a significant year because the trend had changed. The industry experienced a noticeable increase in fossil fuel funding between 2023 and 2024. According to him, banks are investing in fossil fuels and their expansionism. The report finds that JPMorgan, Bank of America, and Citi are the top three banks providing the most funding for fossil fuels and their expansion. These three U.S. banks, together with the British bank Barclays,  were the only ones that raised finance for fossil fuels by almost $10 billion in the previous year.

In 2024, altogether, U.S. banks provided $289 trillion in fossil fuel financing, and approximately one-third of the worldwide finance was funded by these banks. More funding became possible after a number of major U.S. banks either quit climate groups or otherwise withdrew their climate commitments.