The world’s largest banks provided an estimated $906 billion in financing to fossil fuel companies during 2025, marking a sharp increase from the previous year and raising fresh concerns about the financial sector’s commitment to climate goals. According to a new report from climate researchers, the scale of funding remains fundamentally incompatible with efforts to limit global warming and transition toward cleaner energy systems.
The findings show that 65 major international banks collectively increased support for oil, gas and coal projects despite growing warnings from scientists that greenhouse-gas emissions must be reduced significantly to avoid the most severe impacts of climate change.
Researchers described the level of financing as “unfathomable,” arguing that continued investment in fossil fuel expansion undermines global efforts to meet the targets established under the Paris Climate Agreement.
JPMorgan Chase tops the list
Among the institutions examined, JPMorgan Chase was identified as the largest provider of fossil-fuel financing during 2025. The bank was followed by several other major North American, European and Asian financial institutions that continue to support energy companies involved in oil and gas production, transportation and infrastructure development.
The report noted that many of the banks involved have publicly committed to achieving net-zero emissions targets or supporting sustainable finance initiatives. However, researchers argue that ongoing fossil-fuel financing creates a significant gap between public commitments and actual investment practices.
Climate goals versus energy realities
Banks have defended many of their financing decisions by pointing to continuing global demand for energy and the importance of maintaining stable supplies during the transition to lower-carbon systems.
Supporters of continued investment argue that fossil fuels remain essential to economic activity and energy security in many parts of the world. They also note that financing often supports existing operations rather than entirely new projects.
Environmental organisations counter that expanding oil and gas production risks locking economies into decades of additional emissions at a time when renewable energy technologies are becoming increasingly competitive.
Pressure on financial institutions grows
The latest findings are likely to intensify scrutiny from investors, regulators and environmental groups. Shareholders are increasingly demanding greater transparency regarding climate-related risks, while regulators in several jurisdictions are strengthening disclosure requirements for financial institutions.
Many banks now face the challenge of balancing climate commitments with client demand, energy-market realities and shareholder expectations.
The debate has become particularly significant as artificial intelligence, data centres and industrial growth drive higher global electricity consumption, placing additional pressure on energy systems worldwide.
A defining decade for climate finance
The report highlights the central role that financial institutions will play in determining the pace of the global energy transition. While governments set climate targets and companies develop technologies, banks remain responsible for allocating the capital that ultimately shapes future energy infrastructure.
Whether financial institutions accelerate investment in renewable energy or continue substantial support for fossil-fuel industries may prove to be one of the defining factors influencing global emissions during the coming decade.
As policymakers prepare for future climate negotiations, the relationship between banking, energy security and environmental sustainability is expected to remain at the centre of the global debate.
Newshub Editorial in North America – June 10, 2026
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