Capital injections into fossil fuels by the world’s 65 largest banks climbed to $906 billion in 2025, marking a sharp departure from previous environmental commitments.
The 2026 “Banking on Climate Chaos Report” published by the Rainforest Action Network reveals that this figure represents a $65 billion increase over 2024, a trend attributed to industry deregulation and “disaster capitalism.”
JPMorgan Chase remained the primary financier for the third consecutive year, increasing its fossil fuel commitments by 12.6 per cent to reach $58.2 billion. Other leading institutions included Bank of America, MUFG, Mizuho Financial, and Citigroup, with each providing between $45 billion and $47 billion last year.
A group identified as the “Dirty Dozen” – which includes the five banks mentioned above along with Wells Fargo, Royal Bank of Canada, Barclays, SMBC Group, Morgan Stanley, Goldman Sachs, and Toronto-Dominion Bank – was responsible for nearly 39 per cent of all global fossil fuel financing.
Concentrated capital and LNG expansion
The report highlights a dramatic 84 per cent rise in financing for the midstream sector, which manages the transport and storage of oil and gas, totalling $116 billion since 2024.
Niko Lusiani, Research Director at the Rainforest Action Network, noted that much of this went to liquified natural gas (LNG) operations, locking in at least two decades of emissions because these terminals are typically financed against 15-to-20-year sales contracts.
Financing is also becoming more concentrated; in 2025, the top 10 companies received 15.2 per cent of total funding, with the LNG giant Venture Global accounting for 2.7 per cent.
Enbridge, a North American pipeline firm, received $123 billion between 2021 and 2025. Furthermore, coal expansion financing spiked, with mining and power generation receiving 77 per cent and 40 per cent more funding, respectively, than in 2024.
Global market shifts
Despite the overall surge, 26 of the top 65 banks reduced their commitments last year. Market shares for Canadian banks fell by approximately 2 per cent, while the European Union’s share dropped by nearly 1 per cent.
Conversely, banks in the United States, Japan, and China saw increased market shares, with the US described as an “outlier” due to regulatory stances that are “off-kilter” compared to other regions.
Collapse of climate pledges The increase in funding coincides with a broad retreat from climate objectives. The Net-Zero Banking Alliance collapsed in October 2025 after a mass exit of institutions, including the entire “Dirty Dozen.”
Major banks have since rolled back specific targets: JPMorgan Chase moved away from “time- and percent-bound” goals, Wells Fargo discontinued interim 2030 financed emissions targets, and the Royal Bank of Canada withdrew from its 2030 objectives.
In response, a JPMorgan Chase spokesperson claimed their data reflects activities more accurately than third-party estimates, while Citi maintained it is committed to its $1 trillion sustainable finance goal while supporting clients in the transition.
Diogo Silva, a campaign lead at BankTrack, stated that voluntary promises have failed and called for binding regulations.
Economic and geopolitical instability
Experts warn these trends are “directly incompatible” with Paris Agreement targets. Richard Brooks, climate finance director at Stand.earth, cautioned that focusing on “fuels of the past” creates a risk of a “financial crash” as renewable energy integration accelerates.
Geopolitical conflicts have further exposed the volatility of the fossil fuel-dependent economy. Since the war in Iran began on 28 February 2025, American households have paid an average of $424 extra in fuel costs, totalling over $55.5 billion.
The International Energy Agency warned that supply losses from the Strait of Hormuz are depleting global oil inventories at a record pace.
Gerry Arances, executive director at the Center for Energy, Ecology and Development, concluded that fossil fuel dependence is a “structural vulnerability,” warning that expansion is a “death sentence” for climate-vulnerable populations.
