The world’s 65 largest banks increased their financing of fossil fuel companies to $906 billion in 2025, marking an 8% rise from the previous year, according to the latest Banking on Climate Chaos report. The increase highlights the continued importance of oil, natural gas, and coal in meeting global energy demand despite ongoing climate commitments.
Since the Paris Agreement was signed in 2015, major financial institutions have collectively directed approximately $8.7 trillion toward fossil fuel projects. Leading contributors in 2025 included JPMorgan Chase, Bank of America, and Mitsubishi UFJ Financial Group, reflecting sustained investor confidence in traditional energy sectors.
Growing concerns over global energy security have further strengthened support for fossil fuel investments. Market uncertainty and supply chain vulnerabilities have encouraged governments and energy companies to prioritize reliable energy sources and diversify production and transportation infrastructure.
Industry analysts note that investment activity is increasingly focused on exploration and production projects, pipeline development, and liquefied natural gas (LNG) infrastructure outside traditional geopolitical risk zones. Regions such as North America are expected to benefit from rising demand for secure energy supplies and export capacity.
The report also highlights ongoing challenges for renewable energy sectors. While clean energy investment remains substantial worldwide, higher financing costs, policy shifts, and project delays have slowed growth in some renewable technologies, particularly wind, solar, and hydrogen developments.
Energy security has emerged as a major factor influencing global capital allocation decisions. As governments seek to balance affordability, reliability, and sustainability, financial institutions continue to play a critical role in shaping the future of the global energy landscape.
The rise in fossil fuel financing underscores the complex transition facing the energy sector, where growing demand and geopolitical realities continue to influence investment strategies alongside long-term climate goals.
