A new report has revealed that the world’s 65 largest banks committed $906 billion to fossil fuel companies in 2025, underscoring the widening gap between global climate ambitions and the flow of capital that continues to support the carbon-intensive economy.
According to the latest Banking on Climate Chaos report, fossil fuel financing rose by nearly 8 percent from the previous year, reversing expectations that financial institutions would continue reducing support for coal, oil, and gas projects in line with international climate goals.
The findings come at a pivotal moment. Scientists increasingly warn that the world is rapidly approaching critical warming thresholds, while governments and businesses face growing pressure to simultaneously strengthen energy security, support economic growth, and accelerate the transition to cleaner sources of energy.
The Return of Fossil Fuel Finance
The report identifies U.S. banking giants as the largest financiers of the fossil fuel industry, with JPMorgan Chase once again ranking first globally after providing approximately $58 billion in financing during 2025. Bank of America, Citigroup, Mitsubishi UFJ Financial Group, and Mizuho Financial Group were also among the largest providers of capital to fossil fuel companies.
Environmental organizations behind the report argue that nearly half of the financing supported the expansion of existing fossil fuel infrastructure, including new oil and gas production and transportation projects. Financing for expansion activities alone reportedly exceeded $500 billion during the year.
The concentration of financing among a relatively small group of institutions is becoming increasingly pronounced. A group of twelve major banks accounted for roughly 40 percent of all fossil fuel financing globally, according to the analysis.
Climate Commitments Under Pressure
The increase in fossil fuel financing reflects a broader shift in the financial sector. Over the past two years, several major banks have weakened or abandoned climate-related commitments, including participation in collective net-zero initiatives that sought to align lending activities with pathways to reach net-zero emissions by 2050.
Analysts point to a combination of political pressure, energy security concerns, geopolitical instability, and growing demand for reliable energy supplies as factors influencing financial institutions. Recent conflicts, economic uncertainty, and concerns over energy affordability have further complicated the transition away from fossil fuels.
At the same time, many banks argue that the transition to a low-carbon economy will require continued investment in both existing energy systems and emerging clean-energy technologies. Several institutions maintain that they remain committed to long-term decarbonization goals while supporting current energy needs.
A Defining Moment for the Energy Transition
The report may reveal less about the future of fossil fuels than it does about the realities of the global economy.
For years, the dominant narrative suggested that the energy transition would involve capital steadily shifting away from fossil fuels and toward cleaner alternatives. Instead, the world appears to be entering a more complex phase: demand for energy is growing so rapidly that investment is increasing across both systems simultaneously.
Artificial intelligence, data centers, industrial reshoring, population growth, and rising living standards are driving unprecedented demand for electricity and energy infrastructure. While renewable energy is expanding at record rates, many governments and investors remain unwilling to bet that clean energy can scale quickly enough to meet near-term demand on its own.
The result is a paradox. The world is investing trillions to build the energy system of the future while continuing to finance the energy system of the present.
Whether this represents a temporary bridge or a long-term reality may prove to be one of the defining economic and political questions of the coming decade.
Read the Banking on Climate Chaos report
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