Since the Paris Agreement was signed in 2016, Europe’s biggest banks, including Barclays, Santander, and Deutsche Bank, have financed fossil fuels with nearly $7 trillion (€6.5 trillion). A new report from Banking on Climate Chaos (BOCC) reveals that these banks have provided $6.9 trillion (€6.4 trillion) in financing to over 4,200 fossil fuel firms and companies linked to the degradation of the Amazon and Arctic. Despite commitments to lower emissions through the Net Zero Banking Alliance in 2021, the world’s top banks provided $705 billion (€653 billion) to fossil fuel companies last year, with $347 billion (€321 billion) going towards fossil fuel expansion. US banks, contributing 30 per cent of the total amount, topped the list in 2023, with JP Morgan Chase providing the most funding to fossil fuel firms at $41 billion (€38 billion). Japanese bank Mizuho came in second with $37.1 billion (€34 billion), while Bank of America ranked third. European banks contributed just over a quarter of the total fossil fuel financing in 2023. Barclays was Europe’s biggest fossil fuel financier in 2023, providing $24.2 billion (€22.4 billion), and ranked eighth in the top banks financing fossil fuels since the Paris Agreement. Santander was Europe’s second biggest at $14.5 billion (€13.4 billion) in 2023, and Deutsche Bank was third with $13.4 billion (€12.4 billion). The report found that an increase in financing by European banks is one of the “surprising trends” from last year. The decline among European banks was quite small, driven by an increase in fossil finance, mostly for liquefied natural gas (LNG), from banks in Germany, the Netherlands, Spain and Denmark. Critics argue that the report’s methodology may include some decarbonisation projects and funds for transition technology in the total, as it credits all banks making financial contributions to a deal. Despite the methodology concerns, the report warns that banks appear to have reached a plateau with “new normal” policies which, as a whole, “remain too weak to tackle oil and gas expansion”. However, the report also highlights that European banks are among those picking up the pace on commitments to restrict the financing of new oil and gas fields in 2023. In total, 38 of the world’s biggest banks have some restrictions on financing oil and gas, with La Banque Postale and Danske Bank having the most significant restrictions. Despite progress on oil and gas restrictions, less progress was made on commitments to restrict financing for coal, and the quality of oil and gas policies doesn’t appear to have improved.
European Banks Finance Fossil Fuels with $51 Billion in 2023, Report Finds
