Banks are financing the fossil fuel industry’s next growth strategy

For the past two years, more than a dozen major banks have been not only reneging on their climate commitments, they’ve been actively making the crisis worse. In 2024 and 2025, during the leadup to President Donald Trump’s second inauguration, all six of the nation’s largest banks abandoned the Net-Zero Banking Alliance, a voluntary climate coalition, precipitating the Alliance’s complete shutdown in October. Since then, others including Royal Bank of Canada, Scotiabank, HSBC, Nat West, Santander, and JPMorgan Chase have either weakened or scrapped their decarbonization targets. Now, new evidence shows banks are ramping up spending on fossil fuels. Beyond helping companies extract more oil and gas, they are bankrolling the industry’s pivot to plastics, fertilizers, and other petrochemical products. Two reports released earlier this month illustrate the trend. An analysis from the Rainforest Action Network, or RAN, and other environmental groups found the world’s top 65 banks contributed $508 billion to companies expanding fossil fuel development in 2025. That’s a 27 percent increase since 2024, and more than any other year since at least 2016, based on the organization’s past analyses. The second report comes from the nonprofit Center for International Environmental Law, or CIEL. It found that, between January 2019 and June 2025, big banks gave the world’s top 15 petrochemical companies at least $591 billion in loans and underwriting. Some of that benefited integrated oil and gas corporations; the amount CIEL could directly attribute to petrochemical activities was $252 billion. (For context, New Zealand’s GDP is about $279 billion.) Together, the reports suggest that large financial institutions are enabling a long-term viability strategy for the fossil fuel industry, one in which declining demand for oil and gas in energy systems and transportation is offset by a boom in petrochemicals. Indeed, in recent years oil majors including Exxon Mobil, Shell, and Saudi Aram