The world’s biggest banks collectively increased their support for fossil fuel companies by $162 billion in 2024, bringing the total to a staggering $869 billion, up from $707 billion in 2023, according to the Fossil Fuel Finance Report 2025.
The report, released by the Banking on Climate Chaos Coalition—a consortium of eight environmental organisations—warns that this spike in fossil fuel financing undermines global climate goals. It called the rise “deeply troubling,” citing the International Energy Agency (IEA) which stated that fossil fuel investments must fall by more than half by 2030 to meet net-zero targets.
SBI Among Major Financiers of Fossil Fuels
India’s State Bank of India (SBI) was among nearly 50 major banks that increased their funding to the fossil fuel sector in 2024. SBI’s fossil fuel financing rose by $65 million, the report revealed.
While the rise was modest compared to some international peers, it still places SBI in the spotlight given India’s commitment to reduce its carbon footprint and meet climate goals under the Paris Agreement.
The report tracked direct loans and underwriting of debt and equity issued to over 4,200 companies involved in coal, oil, and gas projects worldwide.
Climate Groups Call for Urgent Policy Shift
Environmental activists have responded sharply to the findings. “This growth in fossil fuel finance is not just inconsistent with climate science—it’s a direct contradiction,” said a spokesperson for Rainforest Action Network, one of the coalition’s members.
The coalition urged governments to increase pressure on the banking sector to shift funds toward clean energy. “New fossil fuel infrastructure locks in more decades of emissions,” the report stated, echoing findings from the IEA’s 2024 Energy Investment Outlook.
US and Canadian Banks Lead the Pack
Among the 65 banks analysed, JPMorgan Chase, Citigroup, Wells Fargo, and Bank of America were found to be the biggest fossil fuel financiers globally. Canadian banks such as RBC and Scotiabank also saw significant increases.
These banks continue to support oil and gas expansion projects, including tar sands, Arctic drilling, and fracking. Environmentalists warn these investments threaten to derail the global push toward a carbon-neutral future.
India’s Dual Challenge: Energy Access vs. Sustainability
India faces a tough balancing act. While fossil fuels remain central to its growing energy demand, the country has pledged to reach net-zero emissions by 2070.
Experts argue that Indian banks must start redirecting capital towards renewable energy, electric mobility, and energy efficiency to align with long-term sustainability goals.
“India’s growth story should not come at the cost of environmental degradation,” said environmental economist Anjali Sharma. “Banks like SBI should be leading the way in green financing.”
The Global Call to Phase Out Fossil Fuel Funding
The Banking on Climate Chaos Coalition urged immediate action. It demanded that banks adopt fossil fuel exclusion policies. However, increase climate risk disclosures, and set binding targets for reducing exposure to high-emission sectors.
It also encouraged banks to align lending portfolios with the 1.5°C pathway laid out in the Paris Climate Agreement.
The coalition’s data tool, available online, allows the public to track each bank’s fossil fuel financing trends.
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