Fact Check: Two-thirds of top banks increased fossil fuel financing by $162 billion from 2023 to 2024!

Fact Check: "Two-thirds of top banks increased fossil fuel financing by $162 billion from 2023 to 2024!"

What We Know

Recent reports indicate that the world's largest banks have significantly increased their financing of fossil fuel companies. A coalition of eight environmental advocacy groups published a report titled "Banking on Climate Chaos," which claims that the 65 largest banks globally committed $869 billion to fossil fuel companies in 2024, marking an increase of $162 billion from 2023. Notably, two-thirds of these banks—45 out of 65—increased their financing for oil, gas, and coal during this period (American Banker, The Guardian).

The report highlights a stark reversal from previous years, where fossil fuel financing had been on a decline. In 2021, many of these banks had joined the Net-Zero Banking Alliance, pledging to reduce their support for fossil fuels. However, the political climate and economic factors, including rising oil and gas prices, have led to a renewed interest in fossil fuel investments (The Guardian, Yahoo Finance).

Analysis

The claim that "two-thirds of top banks increased fossil fuel financing by $162 billion from 2023 to 2024" is supported by multiple reputable sources. The "Banking on Climate Chaos" report, which is the primary source of this information, has been corroborated by various news outlets, including The Guardian and American Banker. This report is based on data collected from the 65 largest banks, making it a comprehensive analysis of the current financing landscape.

However, some banks have contested the findings, arguing that they continue to prioritize clean energy investments. For instance, JPMorgan Chase claimed that it financed renewable energy at a rate 1.29 times greater than fossil fuels in 2023 (American Banker). Despite these assertions, the overall trend indicated by the report suggests a significant shift back towards fossil fuel financing, which raises questions about the reliability of individual bank claims in the context of broader industry trends.

The reliability of the sources is generally high, as they are based on a coalition of environmental advocacy groups with expertise in climate finance. However, it is essential to consider potential biases, as these groups may have a vested interest in highlighting negative trends in fossil fuel financing to advocate for stronger climate action.

Conclusion

The claim that "two-thirds of top banks increased fossil fuel financing by $162 billion from 2023 to 2024" is True. The evidence from the "Banking on Climate Chaos" report, along with corroborating reports from reputable news sources, supports this assertion. The significant increase in financing, despite prior commitments to reduce fossil fuel support, indicates a troubling trend in the banking sector's alignment with climate goals.

Fact Check: Two-thirds of top banks increased fossil fuel financing by $162 billion from 2023 to 2024!