Earth Org reveals that 45 banks boosted fossil fuel finance by more than a fifth in 2024, according to a new report by a coalition of groups coordinated by the Rainforest Action Network.
Some of the world’s largest banks, led by JP Morgan Chase, Bank of America, and Citigroup, pledged US$869 billion ($1.325 trillion) in financing fossil fuels, in conjunction with a further US$429 billion in fossil fuel production and infrastructure expansion finance.
Fossil fuels are non-renewable energy sources such as coal, oil, and natural gas. The burning of coal, oil, and natural gas is the single largest source of global greenhouse gas emissions.
Over 40% of energy-related CO2 emissions are due to the burning of fossil fuels for electricity generation.
Earth Org reports that 36 fossil fuel companies, including Saudi Aramco (TADAWUL:2222), Coal India (NSE:COALINDIA), ExxonMobil (NYSE:XOM) and Shell (LSE:SHEL), are responsible for over half of the world’s CO2 emissions.
According to NRDC, using fossil fuels for energy has extracted an “enormous toll” on humanity and the environment from air and water pollution to global warming.
Of the 65 banks covered in the report, 45 had ramped up coal, oil, and gas finance by US$162 billion and 48 increased fossil fuel expansion finance by $84.4 billion between 2023 and 2024.
Since the Paris Agreement came into effect in 2016, Earth Org says these banks have collectively committed US$6.7 trillion in fossil fuel financing.
In recent months, several banks have withdrawn from the net zero banking alliance (NZBA), including Goldman Sachs, Wells Fargo, Citi Bank, Bank of America, Morgan Stanley, and JP Morgan.
Canada’s six biggest banks followed suit shortly thereafter, according to Earth Org.
NZBA is a global alliance of banks — set up by a United Nations-sponsored initiative in 2021 — committed to aligning their lending and investment portfolios with net zero emissions by 2050.
As a result of several banks opting out of the alliance, analysts say the moves send a “clear signal to the market that climate change has become even less of a priority for Wall Street,” Earth Org reports.
Australia-based financial services group Macquarie also left the NZBA.
ESG Today says while Macquarie did not specify reasons for leaving the alliance, the firm said in a statement that its net zero strategy will continue to guide activity, but that its climate strategy is evolving to “meet the needs” of clients and the requirements of governments and regulators.
These departures come shortly after the election of US President Donald Trump.
Write to Aaliyah Rogan at Mining.com.au
Images: Earth Org
