Sylvie Willis
The world's largest banks have provided trillions in financing to the fossil fuel industry, with the top 60 banks by asset size providing $3.8 trillion. Since the 2015 Paris Climate Agreement, these banks have poured $5.5 trillion into the industry. The banks that finance the most fossil fuels include JPMorgan Chase, Wells Fargo, Citi, Bank of America, TD, Morgan Stanley, and Goldman Sachs. These banks have enabled projects that cause environmental and community harm by pouring billions into liquefied gas exports and fracking. As a result, individuals are increasingly seeking out eco-friendly banks that refuse to finance environmentally harmful projects and proactively finance renewable energy initiatives.
Explore related products
What You'll Learn
Fossil fuel financing by the world's largest banks
JPMorgan Chase, Mizuho, and Bank of America are the worst three funders of fossil fuels. In 2023, JPMorgan Chase financed fracking with $6 billion and provided $40.8 billion to fossil fuel companies. Since 2016, it has been the world's biggest funder of oil and gas in the Arctic, providing $122 million in 2023. Citi is the worst funder of fossil fuel expansion since the Paris Agreement, providing $204 billion since 2016 to companies building pipelines, oil rigs, and gas terminals. Bank of America has dropped its exclusions on directly financing Arctic drilling, coal mining, and coal-fired power plants, and has committed $162 million to companies extracting oil and gas in the Amazon biome.
Other top funders of fossil fuels include Wells Fargo, Goldman Sachs, and Morgan Stanley. These banks have poured $226 billion into liquefied natural gas (LNG) exports in the last eight years, with Citi being the world's biggest funder of LNG since 2016, providing $55 billion to liquefied gas companies.
The financing of fossil fuels by the world's largest banks has severe consequences for the planet. To limit global warming to 1.5°C, over half of fossil fuels in existing fields and mines must remain underground. However, by accelerating the expansion of the fossil fuel industry, banks are exacerbating the climate crisis and causing environmental and community harm.
Fossil Fuels: Ancient Organic Matter's Transformation
You may want to see also
Explore related products
Top fossil fuel funding banks
The world's largest banks have provided trillions in financing to the fossil fuel industry since the Paris Agreement. In 2023 alone, banks injected $705 billion into fossil fuel financing, with $347 billion going to companies expanding fossil fuels. The top fossil fuel-funding banks include:
JPMorgan Chase
JPMorgan Chase (also known as JP Morgan Chase or simply Chase) is consistently ranked as the top fossil fuel funder among the world's largest banks. Since 2021, the bank has provided over $192 billion in fossil fuel financing. In 2023, the bank committed $40.8 billion to fossil fuel companies, including $6 billion for fracking and $122 million for oil and gas in the Arctic.
Citi
Citi is one of the worst funders of fossil fuel expansion, providing $204 billion since 2016 to companies building pipelines, oil rigs, and gas terminals. They are also the second-largest funder of Arctic oil and gas, providing $246 million in 2023. Citi is the world's biggest funder of liquefied natural gas (LNG), having provided $55 billion since 2016.
Bank of America
Bank of America is ranked as the third-worst fossil fuel funder in 2023. The bank has dropped its exclusions on directly financing Arctic drilling, coal mining, and coal-fired power plants. Bank of America has also committed to companies extracting oil and gas in the Amazon biome.
Wells Fargo
Wells Fargo is one of the top funders of fracked oil and gas, and is among the six biggest U.S. banks enabling projects that cause environmental harm.
Other Notable Banks
Other banks that have provided significant financing to the fossil fuel industry include Goldman Sachs, Morgan Stanley, UniCredit, Barclays, and Credit Agricole.
Fossil Fuels: Carbon-Based Energy Sources
You may want to see also
Explore related products
Banks with fossil fuel financing policies
Since the Paris Agreement, the world's largest banks have provided trillions in financing to the fossil fuel industry. Fossil fuel companies require financing to initiate and sustain projects. According to the Rainforest Action Network, the US banks that finance the most fossil fuels include JPMorgan Chase, Wells Fargo, Citi, Bank of America, TD, Morgan Stanley, and Goldman Sachs. These banks are among the most popular in the country, holding almost half of American bank accounts.
In 2023, JPMorgan Chase was the world's top fossil fuel financier, committing $40.8 billion to fossil fuel companies. Chase is also the top financier of oil and gas in the Arctic, providing $122 million in 2023. Citi is the world's biggest funder of liquefied natural gas, providing $55 billion to the top liquefied gas companies. Bank of America, which ranks third on the 2023 list of worst fossil fuel funders, has dropped its exclusions on Arctic drilling, thermal coal, and coal-fired power plants. The bank has also not committed to disclosing its energy financing ratio or adopting near-term absolute emissions targets.
Other top funders of fossil fuel expansion include UniCredit, Citigroup, Intesa Sanpaolo, Barclays, and Credit Agricole. The top funders of tar sands extraction are CIBC, RBC, Scotiabank, Toronto-Dominion Bank, and Mizuho. Mitsubishi UFJ Financial Group (MUFG) has committed significant funding to companies engaging in ultra deepwater offshore drilling, while CITIC has backed coal mining with $7.6 billion.
It is important to note that some banks have made public commitments to not finance fossil fuels. Examples of fossil fuel-free banks in the US include Beneficial State Bank, Clean Energy Credit Union, Cencap Federal Credit Union, and Climate First Bank.
Fossil Fuels: Combustion's Essential Role
You may want to see also
Explore related products
Eco-friendly banks
The world's largest banks have provided trillions in financing to the fossil fuel industry, with the top 60 banks by asset size contributing $6.9 trillion since the Paris Agreement. The worst offenders include JPMorgan Chase, Mizuho, and Bank of America, which have funnelled billions into fossil fuel expansion and harmful practices such as fracking, offshore drilling, and Arctic oil and gas exploration.
In contrast, eco-friendly banks offer a more sustainable approach to banking by investing in eco-friendly projects and companies. They avoid funding fossil fuels and other environmentally detrimental industries, instead directing their money towards green initiatives.
One example of an eco-friendly bank is Climate First Bank, which has donated over $200,000 to non-profit partners and financed solar energy systems to reduce solar costs. Atmos Financial is another online banking platform that has pledged to finance zero fossil fuel companies and projects. It offers a high-yield savings account with a competitive interest rate, where customers can support climate justice initiatives.
When choosing an eco-friendly bank, it is important to look for institutions that are transparent about their practices and can provide clear examples of how they help fight the climate crisis. Good eco-friendly banks will offer strong rates and perks on their bank accounts, as well as a range of account types to suit different customer needs. By banking with these institutions, individuals can ensure that their money is being used to support the planet and create a greener future.
Fossil Fuels: More Carbon than Photosynthesis?
You may want to see also
Explore related products
Banks funding the most climate-damaging fossil fuel practices
Several banks have been identified as major funders of fossil fuel companies and projects, contributing to climate change and environmental degradation. The annual Banking on Climate Chaos report, released by the Rainforest Action Network, provides insights into the financial institutions backing the most harmful practices. According to the 2024 report, the top three worst funders of fossil fuels were JP Morgan Chase, Mizuho, and Bank of America. These banks, along with others, have been implicated in financing various climate-damaging activities.
JP Morgan Chase, the top fossil fuel financier in 2023, committed a significant amount of $40.8 billion to fossil fuel companies. Notably, the bank financed fracking with $6 billion. Additionally, JP Morgan Chase is a leading funder of fossil fuel expansion and has been the world's biggest funder of oil and gas in the Arctic, providing $122 million in 2023.
Mizuho, the second-worst funder, significantly increased its financing of fossil fuels, reaching $37 billion. The bank also provided substantial funding for the expansion of fossil fuels, amounting to $18.8 billion.
Bank of America, ranking third on the list, exhibited multiple climate policy failures. The bank dropped its exclusions on Arctic drilling, thermal coal, and coal-fired power plants. It also abandoned the Equator Principles and lacked near-term absolute emission targets. Bank of America committed to companies extracting oil and gas in the Amazon biome, contributing to the destruction of sensitive biomes.
Other notable banks mentioned in the report include Citibank, the worst funder of fossil fuel expansion since the Paris Agreement, providing $204 billion. Wells Fargo, Goldman Sachs, and Morgan Stanley are also among the six biggest U.S. banks enabling projects causing environmental harm by investing heavily in liquefied gas exports. Additionally, the report highlights the top 60 banks by asset size, including UniCredit and Mitsubishi UFJ Financial Group (MUFG), which financed Arctic drilling and ultra deepwater offshore drilling, respectively.
The cumulative impact of these banks' funding decisions has resulted in a staggering $705 billion injected into fossil fuel financing in 2023 alone, driving climate chaos and detrimental effects on communities and the environment worldwide.
Carpooling: A Sustainable Way to Reduce Fossil Fuel Usage
You may want to see also
Frequently asked questions
According to a 2023 report, the worst funders of fossil fuels are JPMorgan Chase, Citi, and Bank of America.
The top 6 US banks have provided $1.8 trillion since the Paris Agreement. The world's largest banks have provided $5.5 trillion to the fossil fuel industry since the 2015 Paris Climate Agreement.
The worst funders of tar sands extraction are CIBC, RBC, Scotiabank, Toronto-Dominion Bank, and Mizuho.
The worst banks financing Arctic oil and gas in 2023 are UniCredit, Citigroup, Intesa Sanpaolo, Barclays, and Credit Agricole.
