Slowed momentum for the global energy transition is growing evident on multiple fronts, and major banks are falling in line with that slowdown in some tangible and measurable ways. Following two years of decline, major banks' financing to fossil fuel companies was up 23% last year at $869 billion, according to the new Banking on Climate Chaos report — which said the issue reaches beyond the US financial sector. The annual findings are published by a group of activist nonprofits and examine the world's top 65 banks' lending and underwriting to almost 3,000 fossil fuel companies. New loans amounted to $467 billion in 2024, up from $422 billion in 2023; bond issues to $401 billion, up from $284 billion; and acquisition finance to $83 billion, up from $64 billion.
Fossil fuel lending increased despite global coal, oil and gas capital expenditure stagnating at $1,200 billion in 2024, just $20 billion above $1,180 billion in 2023, according to the International Energy Agency's recent World Energy Investment report. This is because recent cuts in interest rates have made borrowing cheaper for fossil fuels and other companies, which means they have been more willing to seek out external funding to either finance capex, acquisitions or share buybacks.
