Full Breakdown
The Role of Major Banks in Fossil Fuel Financing and Climate Commitments
10/23/2025, 11:29:29 AM
Overview of the Current Situation
Recent research from the TPI Global Climate Transition Centre at the London School of Economics reveals that no major bank has committed to halting funding for new oil, gas, or coal projects. The analysis of 36 leading banks indicates that many have weakened their climate policies, with 95% of their scores remaining unchanged year-on-year. The report highlights that banks are still in the early stages of transitioning towards decarbonization, with an average score of only 18% across 77 sub-indicators related to climate commitments.
Key Findings from the Research
The TPI report indicates that banks have diluted their disclosures regarding net zero commitments and financing conditions for high-emission sectors. Notably, 17 of the assessed banks have financing targets for climate solutions, but the criteria for eligible activities vary significantly. Since the Paris Agreement, major banks have reportedly provided nearly $7 trillion in funding to the fossil fuel industry, underscoring their ongoing support for high-emission projects.
Impact on the Amazon Rainforest
In a related analysis by Stand.earth, it was found that banks have injected $2 billion into oil and gas financing in the Amazon since 2024. The report identifies major U.S. banks, including JPMorgan Chase, Bank of America, and Citi, as significant contributors to this funding. The Brazilian bank Itaú Unibanco led the financing with $378 million directed towards oil and gas firms in the Amazon. This expansion poses severe risks to biodiversity and Indigenous communities, with advocates calling for banks to cease financing fossil fuel projects in the region.
Criticism and Opposition
Critics, including Indigenous leaders and environmental advocates, argue that continued financing of fossil fuel projects by banks is complicit in environmental degradation and human rights violations. Jonas Mura, chief of the Gavião Real Indigenous Territory, stated that these investments threaten their survival and cultural heritage. Olivia Bisa, president of the Autonomous Territorial Government of the Chapra Nation, emphasized the urgent need for banks to withdraw support from extractive industries to protect the Amazon.
Official Statements & Responses
Algirdas Brochard from TPI remarked on the slow progress of banks in addressing climate change, stating, “Given banks’ central role in the economy and their far-reaching influence on climate, their slow progress on the climate transition... suggest that the objectives of the Paris Agreement are slipping further out of reach.” Meanwhile, France's Development Minister Eleonore Caroit reaffirmed the country’s commitment to the World Bank’s climate finance goals, despite U.S. pressure to scale back climate ambitions.
What's Next for Climate Financing?
As the upcoming COP30 climate conference approaches, there is a call for banks to announce concrete commitments to cease fossil fuel financing, particularly in the Amazon. The urgency of the situation is underscored by the potential for irreversible damage to one of the world's most vital ecosystems. The actions taken by financial institutions in the coming months will be critical in determining the future of both the Amazon rainforest and global climate commitments.
Conclusion
The findings from various reports highlight a concerning trend among major banks regarding their financing of fossil fuel projects and the implications for climate goals. As the global community prepares for significant climate discussions, the pressure mounts on financial institutions to align their practices with sustainable development and environmental protection.
