Fossil Fuel Finance Report 2025
In 2024, the world’s largest 65 banks committed $869 billion to fossil fuel companies. This marks an increase from $707 billion in 2023. The trend raises concerns about long-term fossil fuel dependence. Notably, the State Bank of India (SBI) was among nearly 50 banks that increased their fossil fuel financing.
Current Financing Landscape
The Fossil Fuel Finance Report 2025 report marks that achieving net zero emissions by 2050 requires reduction in investment in fossil fuels. The International Energy Agency (IEA) states that annual investments must decline by over half by 2030.
State Bank of India’s Role
SBI accounted for a small increase in fossil fuel financing. In 2024, SBI’s financing rose by $65 million, reaching $2.62 billion. This positioned SBI as the 47th largest lender in fossil fuel financing, up from 49th in 2023. Despite this, SBI aims to achieve net zero emissions by 2055. The bank plans for at least 7.5% of its domestic gross advances to be green by 2030.
Comparison with Other Banks
JPMorgan Chase remained the top lender, providing $53.5 billion to fossil fuel companies. This amount is higher than SBI’s total fossil fuel financing from 2021 to 2024, which was $10.6 billion. The increase in financing by major banks contrasts with previous trends of declining support for fossil fuels.
Coal Financing Concerns
Indian banks, including SBI, face criticism for their coal financing policies. A think-tank brought into light that only two Indian banks have explicit coal exclusion policies. The report suggests that coal is no longer an economically viable energy source compared to renewable energy options.
Global Trends in Fossil Fuel Financing
The increase in fossil fuel financing is not limited to North America. European banks, previously seen as progressive, have also started to backtrack on climate commitments. In 2024, financing for acquisitions in the fossil fuel sector rose , indicating a consolidation trend among fossil fuel companies.
Impact of Political Decisions
Political decisions have influenced the financing landscape. The US withdrawal from the Paris Agreement and the rollback of various environmental policies under the Trump administration have contributed to increased fossil fuel financing. Major US banks have also distanced themselves from global green finance initiatives.
Future Projections
The report indicates that since the Paris Agreement, banks have committed $7.9 trillion to fossil fuel financing. This ongoing support for fossil fuels poses challenges to global climate goals. As the world grapples with climate change, the need for a shift towards sustainable financing becomes increasingly urgent.
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