Global Banks Boost Fossil Fuel Financing to $869B in 2024, Reversing Climate Pledges#

Surge in Fossil Fuel Financing#

The 16th annual Banking on Climate Chaos (BOCC) report, authored by eight environmental groups including Rainforest Action Network and Oil Change International, tracks lending and underwriting to 2,730 fossil fuel firms. Key findings:

• Total Financing: $869 billion* in 2024, up *23$467 billion and bonds jumping to $401 billion [6,20].
• Expansion Funding: $429 billion* went to *706 companies* expanding *oil*, *gas*, and *coal*, a *$84.8 billion increase from 2023 [6,10].
• Since Paris Agreement: The 65 banks have funneled $7.9 trillion* into *fossil fuels* since 2016, with *$3.3 trillion since 2021 [2,10].

“This growth locks in decades of fossil fuel dependence, contradicting the IEA’s call to halve oil, gas, and coal investments by 2030 for net zero by 2050,” the report warns [0,2].

Top Financiers and SBI’s Role#

JPMorgan Chase led with $53.5 billion*, up *$15 billion from 2023, followed by Bank of America ($46 billion*), *Citigroup* (*$44.7 billion), and Mizuho ($40.3 billion*). *U.S. banks* contributed *$289 billion, a third of the global total [6,12,20].

• SBI: India’s sole representative among the top 65, SBI’s $2.62 billion* in 2024 ranked it *47th*, with a modest *$65 million increase. Its 2021–2024 total of $10.6 billion pales compared to JPMorgan’s 2024 alone [0,2].
• SBI’s Green Goals: Chairman CS Setty targets net zero by 2055, with 7.5% of domestic advances (Rs 36.02 lakh crore in March 2025) as green advances by 2030. SBI sanctioned Rs 20,558 crore for sustainable finance by Q1 2025 [0].

Climate Risk Horizons notes coal financing as a “blind spot” for Indian banks, with only Federal Bank and RBL Bank adopting coal exclusion policies [0,2].

Policy Rollbacks and Climate Context#

The financing surge coincides with weakened climate policies:

• U.S. Retreat: In January 2025, the U.S. Treasury exited the Network for Greening the Financial System. Six U.S. banks—JPMorgan, Citigroup, Bank of America, Morgan Stanley, Wells Fargo, and Goldman Sachs—quit the Net Zero Banking Alliance. Wells Fargo scrapped its net zero goal, following Trump’s Paris Agreement withdrawal (effective 2026) [0,6,20].
• European Backtracking: Barclays ($35.4 billion), Europe’s top financier, and banks like Santander and BNP Paribas weakened exclusion policies, despite EU’s greener reputation [6,18].
• 2024 Heat Record: The World Meteorological Organization reported 2024 as the hottest year, with 1.55°C above pre-industrial levels, underscoring the climate crisis [10].

X posts reflect outrage, noting banks’ 20%+ financing increase and JPMorgan’s lead, with some framing it as energy supremacy over ESG [,].

Acquisitions and Systemic Risks#

Acquisition financing rose by $19.2 billion* to *$82.9 billion in 2024. While not directly building infrastructure, mergers strengthen fossil fuel firms’ market power, delaying the phase-out needed for 1.5°C goals [0,2]. Critics argue banks exploit policy loopholes, financing expansion companies under transition plan pretexts, despite third-party analyses deeming these plans uncredible [7,19].

Key Highlights#

• Financing Surge: 65 banks committed $869 billion* to *fossil fuels* in 2024, up *$162 billion, with $429 billion for expansion [0,6,10].
• SBI’s Contribution: SBI increased financing by $65 million* to *$2.62 billion, ranking 47th, but lags behind JPMorgan’s $53.5 billion [0,2].
• Policy Retreat: U.S. banks quit Net Zero Banking Alliance, and European banks weakened exclusion policies [0,6,18].
• Climate Impact: 2024’s record heat (1.55°C above pre-industrial) highlights financing’s role in climate chaos [10].
• Systemic Issue: $7.9 trillion in fossil fuel financing since 2016 locks in decades of emissions [2,10].

Conclusion#

The 65 largest banks’ $869 billion* commitment to *fossil fuels* in 2024, up *$162 billion, marks a troubling reversal of climate progress. SBI’s modest $65 million increase reflects India’s limited role, but global leaders like JPMorgan Chase and Barclays drive the surge, exploiting policy loopholes amid U.S. and European backtracking. With 2024 the hottest year on record, the Banking on Climate Chaos report underscores the need for binding regulations to curb fossil fuel financing and align with Paris Agreement goals. Without action, banks risk banking on climate chaos, endangering economies and ecosystems worldwide [0,6,10].