Home Climate Change Banks Pump $705B Into Fossil Fuels in 2023, Defying Climate Goals

Banks Pump $705B Into Fossil Fuels in 2023, Defying Climate Goals

Banks Pump $705B Into Fossil Fuels in 2023, Defying Climate Goals
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The world’s biggest banks poured $705 billion into fossil fuel industries last year, perpetuating humanity’s reliance on planet-warming coal, oil and gas, according to a report released Monday by a coalition of climate groups.

Since the landmark 2015 Paris climate accord, the top 60 global banks have provided a staggering $6.9 trillion to companies expanding production of the main drivers of climate change, said the report titled “Banking on Climate Chaos.”

“Financiers and investors of fossil fuels continue to light the flame of the climate crisis,” said Tom BK Goldtooth, executive director of the Indigenous Environmental Network and one of the report’s authors.

While last year’s fossil fuel financing dipped 9.5% from 2022’s record levels, some major banks increased their exposure to climate risk by ramping up lending and investing in the fossil fuel sector, the groups said.

JPMorgan Chase topped the list in 2023, providing $41 billion to the industry, a 5.4% increase from the previous year. Japan’s Mizuho rose to second at $37 billion, followed by Bank of America at $33.7 billion.

A JPMorgan spokesperson said the data “reflects our activities more comprehensively and accurately than estimates by third parties.” The bank set targets to align with net-zero emissions and will disclose financing for clean energy, the spokesperson said.

Since most nations signed the Paris agreement aimed at limiting global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit), virtually all the world’s global temperature rise has been caused by carbon pollution from burning fossil fuels.

“Bankers must stop revving their engines on a disaster course,” said Goldtooth. “There’s just no excuse for fossil fuel finance, period.”