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Jun 09, 2026
Analyzed by GPT OSS 120B

World’s Largest Banks Pump $906 bn into Fossil Fuels in 2025, Marking an 8% Surge

AI Summary
In 2025 the 65 biggest global banks extended $906 bn of new financing to coal, oil and gas projects – an 8% rise on the previous year and the highest level on record. The surge, led by JPMorgan Chase and Bank of America, deepens the gap between financial activity and the Paris‑aligned climate agenda, prompting calls for stricter regulation.

Record $906 bn Fossil Fuel Lending by Top Banks in 2025

The coalition of environmental groups behind the Banking on Climate Chaos report found that the world’s 65 largest banks committed $906 bn to the fossil‑fuel sector in 2025, an “unfathomable” increase that locks in additional coal, oil and gas production.

Scale of the New Lending Surge

New financing rose by $64 bn – roughly 8% compared with 2024 – signalling that major lenders are expanding, not curbing, exposure to high‑carbon assets.

  • JPMorgan Chase: $58 bn (up 13% YoY), remains the top financier.
  • Bank of America: second‑largest lender.
  • Japanese banks MUFG and Mizuho Financial follow closely.
  • Citigroup rounds out the top five; Barclays is the highest‑ranked British bank at #8.

Financial Breakdown and Concentration

Fourteen banks – dubbed the “dirty dozen” – accounted for 40% of all fossil‑fuel financing. Six jurisdictions (the US, Canada, Japan, China, the UK and the EU) supplied the bulk of the capital.

  • $508 bn was pledged for expansion of existing fossil‑fuel sites – a 27% jump on 2024.
  • Three US operators – Venture Global, Enbridge and Energy Transfer – were the biggest recipients.

Implications for Climate Goals and Industry Commitments

The financing trajectory directly conflicts with the Paris Agreement’s 1.5°C target, which requires near‑total decarbonisation of energy supply. Since 2015, banks have already funneled $8.7 tn into fossil‑fuel extraction, widening the emissions gap.

Recent political shifts, including the resurgence of climate‑skeptical leadership in the US, have weakened voluntary initiatives such as the Net‑Zero Banking Alliance, which was disbanded after key members withdrew.

Looking Ahead: Regulatory Pressure and Market Realignment

Analysts warn that voluntary pledges are insufficient; stronger regulatory frameworks and legislative action are likely to emerge in the major financial centres.

If policymakers tighten lending standards, banks may face a forced reallocation of capital toward renewable‑energy projects, potentially reshaping the profitability landscape for both traditional and green finance.