A new edition of the Banking on Climate Chaos 2026 report reveals that the world’s 65 largest banks increased their financing of fossil fuel companies by 8% in 2025, reaching a total of $906 billion. The report, produced by a coalition of climate and environmental organizations, highlights that banks from the United States, Canada, Japan, China, the United Kingdom, and the European Union accounted for nearly 90% of global fossil fuel financing during the year.
A significant portion of this funding was directed toward expansion activities across the fossil fuel sector. Banks allocated $508 billion to projects involving the growth of oil, gas, and coal operations, representing a 27.1% increase compared to 2024. The report notes that financing supported developments throughout the energy value chain, including transportation infrastructure, power generation facilities, coal-fired power plants, and new coal mining operations. Environmental groups argue that such investments could lock in decades of additional greenhouse gas emissions and increase long-term energy instability.
The report also estimates that since the adoption of the Paris Climate Agreement in 2015, major global banks have provided approximately $8.7 trillion to fossil fuel-related activities. According to the authors, redirecting a comparable amount of capital toward renewable energy and sustainable infrastructure could have accelerated the global transition to cleaner energy systems while improving environmental and social outcomes.
Among the financial institutions analyzed, a group of twelve banks was identified as the largest contributors to fossil fuel financing. These institutions were responsible for nearly 40% of total global funding directed to the sector. JPMorgan Chase ranked as the largest fossil fuel financier in 2025 with $58.2 billion in financing, followed by Bank of America, Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Citigroup. Other major contributors included Wells Fargo, Morgan Stanley, Goldman Sachs, SMBC Group, Royal Bank of Canada, Toronto-Dominion Bank, and Barclays.
The findings come at a time when renewable energy continues to gain momentum globally. Industry experts reported that renewable power sources met all growth in worldwide electricity demand during 2025, while solar and wind energy expanded their share of electricity generation due to falling costs and ongoing technological improvements. Despite this progress, analysts suggest that financial institutions will play a decisive role in determining the pace of the energy transition, as investment decisions increasingly shape the future balance between fossil fuels and clean energy technologies.
