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September 24, 2025 | 2 weeks ago

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According to a study, Banks are financing fossil fuels more than the energy transition

Major global banks have provided more than twice as much financing to fossil fuels as to those presented as “sustainable” between 2021 and 2024, according to a study published on Tuesday by several NGOs, including Reclaim Finance.

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The analysis, conducted alongside other organizations such as WWF, Urgewald, and Rainforest Action Network, "shows that the 65 largest banks (...) are not on track to finance the energy transition," write its authors.


Globally, major banks (HSBC, JP Morgan, Santander, etc.) provided $1.368 trillion in financing for renewable energies such as wind and solar power over the period, compared with more than double that amount ($3.285 trillion) for fossil fuels.

In other words, for every dollar spent on financing fossil fuels, only 42 cents is allocated to the energy transition.

This ratio is far from being aligned with the recommendations of the International Energy Agency (IEA), according to NGOs, or with the ambitions of the 2015 Paris Climate Agreement, which aims to reduce greenhouse gas emissions and limit global warming.

The study focuses on so-called "sustainable" energies, a term that is more restrictive than the category of renewable energies according to Reclaim Finance, as it excludes, for example, bioenergy and certain hydroelectric projects.

This may explain discrepancies with the data provided by the banks themselves when they publish it.

September 25, 2025 | algeria-logo

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