A recent report by Earth Org reveals that 45 major banks increased their financing of fossil fuels by over 20% in 2024. These banks collectively pledged US$869 billion toward fossil fuels, alongside an additional US$429 billion for fossil fuel production and infrastructure expansion. This comes despite increasing awareness that the burning of fossil fuels is the single largest source of global greenhouse gas emissions, with over 40% of energy-related CO2 emissions stemming from electricity generation.
The report highlights that a small group of fossil fuel companies, including Saudi Aramco, Coal India, ExxonMobil, and Shell, are responsible for over half of the world’s CO2 emissions. Earth Org states that since the Paris Agreement in 2016, these banks have committed US$6.7 trillion in fossil fuel financing.
Adding to concerns, several banks, including JP Morgan Chase, Bank of America and Citigroup, have withdrawn from the Net Zero Banking Alliance (NZBA), a UN-sponsored initiative committed to aligning lending with net-zero emissions by 2050. Macquarie, an Australian-based financial services group that provides diversified financial services around the world, also exited the alliance. While Macquarie stated its net-zero strategy will continue to guide activity, analysts suggest these departures signal a decreased prioritisation of climate change on Wall Street.
ESG Today reports that Macquarie states its climate strategy is evolving to meet the needs of clients and the requirements of governments and regulators.
