Fact Check: World's largest banks pledged a shocking $869 billion to fossil fuels in 2024!

Fact Check: "World's largest banks pledged a shocking $869 billion to fossil fuels in 2024!"

What We Know

In 2024, the world's largest banks collectively pledged $869 billion to fossil fuel companies, according to the latest Banking on Climate Chaos report released by various climate organizations including the Rainforest Alliance Network and the Sierra Club. This amount represents a significant increase of $162.5 billion from the previous year, reversing a trend of declining investments in fossil fuels that had been observed over the past two years. The report highlights that 45 of the 65 largest global banks increased their fossil fuel financing, with major U.S. banks such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo being the top contributors, accounting for 21% of the total global financing in this sector (source-4).

Analysis

The claim that the world's largest banks pledged $869 billion to fossil fuels in 2024 is substantiated by multiple credible sources. The Banking on Climate Chaos report is a well-regarded annual assessment that tracks the financing activities of major banks concerning fossil fuels. This report is compiled by recognized environmental organizations, which adds to its credibility. The increase in fossil fuel financing is described as a significant reversal of previous trends, indicating a shift in the banks' commitments to climate action.

Moreover, the report details that U.S. banks alone contributed $289 billion to fossil fuel financing in 2024, which constitutes about one-third of the total global financing reported (source-6). This aligns with the findings from other sources, which also confirm the substantial increase in fossil fuel investments by these banks (source-8).

While the report's findings are alarming, it is important to consider the potential biases of the organizations involved. The Rainforest Alliance and Sierra Club, while reputable, are advocacy groups with a clear agenda against fossil fuel investments. However, their data collection methods involve verifying information with the banks themselves, which adds a layer of accountability to their findings.

Conclusion

The claim that the world's largest banks pledged $869 billion to fossil fuels in 2024 is True. This figure is supported by comprehensive data from credible environmental reports, which document a significant increase in fossil fuel financing from major banks, reversing a trend of declining investments in this sector. The evidence indicates a concerning shift in the financial commitments of these institutions, raising questions about their climate pledges and the implications for global efforts to combat climate change.

Fact Check: World's largest banks pledged a shocking $869 billion to fossil fuels in 2024!