Financing for fossil fuel expansion by the world’s largest banks increased to US$906 billion in 2025, underscoring continued financial support for oil, gas and coal projects even as renewable energy gains momentum worldwide, according to a new industry report.
The findings, published in the Banking on Climate Chaos 2026 report by a coalition of environmental NGOs, show that lending to fossil fuel producers rose by 8 percent year-on-year, with banks allocating US$508 billion specifically to expansion projects, a sharp 27.1 percent increase from 2024.
The report examined lending patterns from the world’s 65 largest banks, which together have provided an estimated US$8.7 trillion to fossil fuel activities since the 2015 Paris climate agreement.
It found that financial institutions based in the United States, Canada, Japan, China, the United Kingdom and the European Union accounted for nearly 90 percent of global fossil fuel financing in 2025.
“This is a 27.1 percent increase in one year, supporting the extension and potential lock-in of decades of future climate emissions and energy instability,” the report said.
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According to the analysis, lending to fossil fuel expansion intensified across the oil and gas value chain, particularly in transportation, power generation and coal-related infrastructure.
The report highlights a group of 12 major lenders it labels the “Dirty Dozen”, which together account for nearly 40% of global fossil fuel project financing.
At the top of the list is US-based JPMorgan Chase, which provided US$58.2 billion in fossil fuel financing in 2025. It is followed by Bank of America at US$47.3 billion, and Japan’s Mitsubishi UFJ Financial Group and Mizuho Financial Group, each contributing US$46.5 billion.
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US lender Citigroup ranked fifth with US$45.3 billion, while other major financiers include Wells Fargo, Morgan Stanley, Goldman Sachs, Japan’s SMBC Group, Canada’s Royal Bank of Canada and Toronto-Dominion Bank, as well as UK-based Barclays.
The report argues that continued fossil fuel financing is locking in long-term emissions and undermining global climate goals, despite the falling cost of renewable energy technologies and rapid expansion of solar and wind capacity.
It notes that renewable power met all growth in global electricity demand in 2025, signalling a structural shift in energy systems, even as fossil fuel investment remains substantial.
Analysts say the contrast highlights a growing divide in global energy finance, where technological progress in clean energy is not yet fully matched by capital allocation from major financial institutions.
While renewable energy deployment continues to accelerate, the report warns that sustained fossil fuel lending could delay the transition, increase climate risks and raise long-term financial instability across global markets.
The findings suggest that the next phase of the energy transition will increasingly be shaped not only by technology and policy, but by how global capital flows are directed through the banking system.
