Full Breakdown
Major Banks' Continued Financing of Fossil Fuels Amid Climate Concerns
10/22/2025, 6:28:55 AM
Overview of the Current Situation
Research from the TPI Global Climate Transition Centre at the London School of Economics indicates that no major banks have committed to halting funding for new oil, gas, and coal projects. The study assessed 36 of the largest banks and found that many have weakened their climate policies, with 95% of their scores remaining unchanged year-on-year. The banks averaged a score of only 18% across 77 sub-indicators related to climate commitments, and some have replaced definitive terms like "commitment" with vaguer terms such as "ambition."
Financing Trends in the Amazon
In a related analysis, Stand.earth reported that banks have injected $2 billion into oil and gas financing in the Amazon since 2024. This funding has primarily benefited companies like Petrobras and Itaú Unibanco, which have been criticized for their environmental impact and human rights violations. The report highlights that over 80% of this financing has gone to just six oil and gas firms, exacerbating threats to biodiversity and Indigenous communities in the region.
Key Figures and Institutions
Among the banks assessed, JPMorgan Chase, Bank of America, and Citi were identified as significant contributors to fossil fuel financing in the Amazon. Itaú Unibanco emerged as the largest financier, despite claims of supporting environmental conservation. Conversely, European banks like BNP Paribas and HSBC have implemented more stringent policies, resulting in reduced financing for fossil fuel projects.
Criticism from Indigenous Leaders
Indigenous leaders have voiced strong opposition to the banks' financing practices. Jonas Mura, chief of the Gavião Real Indigenous Territory in Brazil, stated that the activities of companies like Eneva have severely impacted their way of life, leading to a decline in wildlife and threatening their survival. Olivia Bisa, president of the Autonomous Territorial Government of the Chapra Nation in Peru, condemned the banks for increasing their financing of oil and gas at a time when the Amazon is under severe threat.
Official Statements and Responses
Algirdas Brochard from TPI remarked on the banks' slow progress in climate transition, suggesting that their actions are undermining the objectives of the Paris Agreement. Martyna Dominiak from Stand.earth emphasized the urgency for banks to cease financing fossil fuels in the Amazon, framing the upcoming COP30 as a pivotal moment for action.
Conflicting Reports and Gaps
While the TPI report indicates a stagnation or regression in banks' climate commitments, Stand.earth's findings highlight a significant increase in financing for fossil fuels. This discrepancy raises questions about the effectiveness of current banking policies and the commitment of financial institutions to climate goals.
What's Next for Climate Finance?
The collapse of the Net Zero Banking Alliance (NZBA) has raised concerns about the future of voluntary climate commitments among banks. Experts suggest that this disbandment could lead to a push for more stringent regulatory frameworks to ensure that banks align their financing with climate goals. As the world approaches COP30, the pressure on banks to reassess their funding strategies for fossil fuels is expected to intensify.
