Report: Major global banks invested $900 billion in fossil fuels last year.

A group of non-governmental organizations pointed out in a joint report that major global banks invested a total of about US$900 billion (about S$1.15 trillion) in fossil fuels last year, an 8% increase from 2024.

According to an AFP report, the latest edition of the "Banking on Climate Chaos" report states that since the signing of the Paris Climate Agreement in 2015, which aimed to limit global warming to 1.5 degrees Celsius above pre-industrial levels, banks have provided approximately $9 trillion in loans, stocks, and bonds to oil, gas, and coal companies.

The report analyzed 65 banks that provided a total of $906 billion in financial support last year, with about three-fifths of them increasing their related funding. Only 26 banks reduced their spending on fossil fuel-related investments during the year.

The report found that JPMorgan Chase topped the list with $58.2 billion in fossil fuel investments, a 12.5% ​​year-on-year increase. This figure surpassed that of Bank of America and Mitsubishi UFJ Financial Group.

In Europe, the report notes that French banking groups have financed approximately $16 billion in fossil fuels, and this has generally been declining in recent years.

Last year, the Net Zero Banking Alliance (NZBA), a UN initiative aimed at promoting carbon neutrality in the banking sector, was terminated due to the deteriorating climate policy environment in Europe and the United States.

Large-scale bank financing of fossil fuels could exacerbate climate change, slow down the energy transition, and increase future financial risks.

The report states, "If these banks had used the nearly $9 trillion they have invested in the equitable energy transition over the past 10 years, the world would be a healthier, fairer, and cleaner place today."

The report also stated: "The banking industry faces a choice: either continue to exacerbate the vulnerabilities, inequalities, and climate destruction of the fossil fuel era, or direct capital toward the reality that renewable energy is cheaper, faster, safer, and irreversible."

This study was a collaborative effort by a consortium of eight NGOs, including the Rainforest Action Network, Reclaim Finance, and Urgewald. The report is based on data directly released by the companies involved, or from professional vendors and financial news organizations such as Bloomberg.

Source: [Lianhe Zaobao] (https://www.zaobao.com/news/world/story20260609-9179374)