World’s largest banks pledged $869bn to fossil fuel firms in 2024, new report finds | Business

The world’s largest banks boosted the quantity of financing given to fossil gas firms final yr, committing $869bn to these concerned in coal, oil and fuel regardless of the worsening local weather disaster and the banks’ personal, fraying, environmental commitments, a brand new report has discovered.The report, compiled by a coalition of eight inexperienced teams, reveals that whereas the quantity loaned by huge banks to fossil gas companies had been declining in 2021, final yr noticed an abrupt reversal. Two-thirds of the world’s largest 65 banks elevated their fossil gas financing by $162bn from 2023 to 2024.Scientists have been clear that no new fossil gas challenge can proceed if disastrous local weather impacts are to be averted, with final yr the most well liked ever recorded amid a slew of disasters pushed by international heating.Nevertheless, many banks have just lately watered down or ditched their very own commitments to assist cut back planet-heating emissions, amid a altering political dynamic that has seen the US once more being led by Donald Trump, who has famously referred to as local weather science “an enormous hoax” and “bullshit”. In February, the US treasury withdrew from a world banking community that goals to extend inexperienced finance and cut back local weather danger.4 of the 5 largest fossil gas financiers final yr have been American firms, with JPMorgan Chase lending essentially the most at $53.5bn. Financial institution of America was second, adopted by Citigroup. The Japanese financial institution Mizuho Monetary was fourth, with Wells Fargo in fifth. The biggest absolute will increase in fossil gas lending final yr got here from the highest American establishments in addition to Barclays, the British financial institution.Within the decade because the world’s political leaders dedicated, within the landmark Paris local weather settlement, to restrain harmful international heating, the largest banks have continued to pour lending in direction of drilling tasks, pipelines and different fossil gas exercise. In complete, banks have financed fossil fuels by $7.9tn because the Paris deal.“By injecting a staggering $869bn into fossil gas financing in 2024 alone, the world’s largest banks fund the local weather chaos that fossil gas firms wreak on folks and communities worldwide,” mentioned David Tong, international trade marketing campaign supervisor at Oil Change Worldwide and a co-author of the report.“Governments should step in and take pressing motion to carry monetary establishments accountable for his or her function within the local weather disaster.”Whereas many of the world’s high monetary companies have pledged to abide by the Paris deal and assist sort out the local weather disaster, lots of them have ignored or walked again these guarantees prior to now yr whereas predicting catastrophic international temperature rises. Final yr, six US senators mentioned that JPMorgan Chase could have misled buyers by backtracking on its local weather commitments.Then, in January, shortly earlier than the inauguration of Trump as US president, the six largest American banks – JP Morgan, Citigroup, Financial institution of America, Morgan Stanley, Wells Fargo and Goldman Sachs – all withdrew from the online zero banking alliance.The alliance is a United Nations-sponsored initiative to spur banks to align their lending and funding portfolios with the Paris targets. It requires banks to set targets and cut back emissions related to their investments.“This yr, banks have proven their true colours – many have walked away from local weather commitments and doubled down on financing fossil gas growth, whilst international temperatures break information,” mentioned Lucie Pinson, director and founder at Reclaim Finance, and one other report co-author.“A number of European banks could have inched ahead, however for many, the lure of soiled cash has confirmed too robust.”The Guardian contacted the entire high lenders to fossil fuels in regards to the report, which known as Banking on Local weather Chaos. A Citi spokesperson mentioned that it helps the “transition to a low-carbon financial system and, in 2021, made a dedication to achieve net-zero greenhouse fuel financed emissions by 2050.“We work with our shoppers as they search to decarbonize their companies and assist clear power options as a part of our $1tn sustainable finance aim. Our strategy displays the necessity to transition whereas additionally persevering with to fulfill international wants for power safety, notably on this time of accelerating electrical energy demand.”A Barclays spokesperson mentioned: “Barclays supplies finance to fulfill shopper and companies power wants whereas financing the scaling of unpolluted power. Final yr, we mobilised practically $100bn extra Sustainable and Transition Finance than in 2023 and proceed to take a position £500m in local weather tech start-ups by 2027. These are vital interventions to assist our shoppers to transition.” ENDS