In a recent report by the Rainforest Action Network (RAN) and partners, it was revealed that despite growing global pressure for banks to divest from fossil fuel companies, the 60 largest private banks in the world continued to provide $6.8 trillion in funding to fossil fuels. This comes after many banks had pledged to reduce or end funding to oil and gas companies in support of the Net Zero Banking Alliance.
JPMorgan Chase was identified as the biggest financer for fossil fuels, providing $40.8 billion in funding in 2023. Other major contributors included Mizuho, Citibank, Deutsche Bank, DZ Bank, Barclays, and Santander. The report’s co-author, April Merleaux, criticized Wall Street for prioritizing profit over climate and human rights concerns, stating that the financing of fossil fuels is not declining fast enough.
Critics of the report questioned where the funding went within the fossil fuel sector, with some banks claiming their financing primarily supported green transition efforts by energy companies. Despite this, U.S. banking institutions were found to be the biggest contributors to the fossil fuel sector in 2023.
Although some banks like Barclays have announced plans to stop directly financing new oil and gas projects, environmentalists are calling for more significant action. Transparency from these banks could help consumers understand where the financing is going and put pressure on banks to transition towards cleaner energy sources. As the world continues to push for decarbonization, the role of major banks in financing fossil fuels remains a contentious issue.
