In 2024, major banks significantly increased their financing for the fossil fuel industry, reversing previous climate commitments. A report from the Rainforest Action Network (RAN) indicates that the world's top 65 banks contributed $508 billion to fossil fuel development, marking a 27% increase since 2024. This trend coincides with the abandonment of the Net-Zero Banking Alliance by six of the largest U.S. banks.
Fossil Fuel Financing Surge in 2024
Between 2024 and 2025, the fossil fuel financing landscape has changed dramatically. The six largest banks in the U.S. withdrew from the Net-Zero Banking Alliance, leading to its shutdown in October 2025. This shift has allowed banks like Royal Bank of Canada, HSBC, and JPMorgan Chase to reduce or eliminate their decarbonization targets.
According to RAN's analysis, all 65 banks examined increased their funding for oil and gas exploration, transportation, and refining. The most significant growth was in financing for transportation projects, including pipelines and LNG export terminals, which can lock in fossil fuel usage for decades.
Petrochemical Investments by Major Banks
In addition to oil and gas, banks are also backing the fossil fuel industry's pivot to petrochemicals. The Center for International Environmental Law (CIEL) reported that between January 2019 and June 2025, major banks provided at least $591 billion in loans and underwriting to the top 15 petrochemical companies. This funding is essential for maintaining the industry's viability amid declining demand for traditional fossil fuels.
