World’s Largest Banks Boost Fossil‑Fuel Funding in 2025, Undermining Climate Pledges
The 17th edition of the annual “Banking on Climate Chaos” report, released by the Rainforest Action Network in partnership with Reclaim Finance, shows that the 65 biggest global banks increased their lending to oil, gas and coal companies by 8 % in 2025, reaching a total of $906 billion. This marks the second consecutive year of rising fossil‑fuel financing after a brief dip in 2022‑2023 when many institutions tightened ESG (environmental, social and governance) policies.
Historical Context Since the Paris Agreement
Since the 2015 Paris Agreement, the same group of banks has funneled an estimated $8.7 trillion into fossil‑fuel projects, according to the report’s open‑source data set that aggregates loan disclosures, bond underwritings and syndicated financing figures. The trend reversed in 2024, when lending rose to $869 billion—a $162 billion jump from 2023—following political pushback against net‑zero commitments, especially in the United States.
2025 Leaders in Fossil‑Fuel Finance
JPMorgan Chase retained its position as the top financier, providing $58.2 billion in 2025, a 12.5 % increase over 2024. Bank of America and Japan’s Mitsubishi UFJ Financial Group (MUFG) tied for second place, each extending roughly $47 billion; MUFG’s figure represents a 21 % year‑on‑year rise.
The report highlights the following ten banks as the largest sources of fossil‑fuel capital in 2025:
- JPMorgan Chase (United States) – $58.2 billion
- Bank of America (United States) – $47.0 billion
- Mitsubishi UFJ Financial Group (Japan) – $47.0 billion
- Mizuho Financial Group (Japan) – $42.5 billion
- SMBC Group (Japan) – $40.1 billion
- Citigroup (United States) – $38.9 billion
- Wells Fargo (United States) – $36.4 billion
- Morgan Stanley (United States) – $34.2 billion
- Royal Bank of Canada (Canada) – $31.8 billion
- Barclays (United Kingdom) – $30.5 billion
Regional Shifts in Financing Patterns
U.S. banks collectively accounted for 32 % of global fossil‑fuel lending in 2025, up from 28 % in 2021, making them the single largest regional source of capital for the sector. European institutions, by contrast, have generally reduced their exposure: BNP Paribas cut fossil‑fuel transactions by 28 %, UBS by 36 %, and La Caixa by 34 %.
Some European banks, however, moved in the opposite direction. Standard Chartered increased its fossil‑fuel lending by 28 %, Deutsche Bank by 20 %, and HSBC by 16 %, underscoring divergent strategies even within the same region.
Expert Commentary
Lucie Pinson, director and founder of Reclaim Finance and a co‑author of the report, warned that the continued flow of capital into fossil‑fuel expansion reveals how deeply major banks remain embedded in a climate‑damaging business model. “The data show that, despite public net‑zero pledges, the largest banks are still financing projects that lock in decades of carbon emissions,” Pinson said.
Implications for Climate Goals
The report’s findings raise concerns about the alignment of private finance with the Paris Agreement’s goal of limiting global warming to 1.5 °C. Analysts note that without a significant redirection of capital toward renewable energy and energy efficiency, the banking sector could undermine national and international climate commitments.
Investors, regulators and civil‑society groups are increasingly calling for stronger disclosure requirements, mandatory climate‑risk stress tests, and incentives that tie executive compensation to measurable reductions in financed emissions.
Sources
- Rainforest Action Network & Reclaim Finance. “Banking on Climate Chaos – 17th Edition.” 2025.
- JPMorgan Chase & Co. Annual Report 2025 – Fossil‑Fuel Exposure Section.
- Bank of America Corporation. 2025 Environmental, Social and Governance (ESG) Supplement.
- Mitsubishi UFJ Financial Group (MUFG). Integrated Report 2025.
- European Banking Authority. “Climate‑Related Risks in the EU Banking Sector.” 2024.
