A new report by Reclaim Finance, in partnership with WWF, Urgewald, and Rainforest Action Network, reveals that the world’s largest banks are far from meeting the financing needed for a clean energy transition.
According to the study, the 65 biggest banks globally, including HSBC, JP Morgan, and Santander, allocated $3,285 billion to fossil fuel projects between 2021 and 2024, compared with only $1,368 billion for sustainable energy sources like solar, wind, and related infrastructure. This means that for every dollar directed to fossil fuels, just 42 cents went to green alternatives.
The study highlights a stark regional disparity in financing patterns. US and Canadian banks were found to provide four times more funding to fossil fuels than to sustainable alternatives. European and Asian institutions performed somewhat better but still fell “well below” the levels necessary to support a global energy transition.
UN Secretary-General Antonio Guterres was cited in the report, emphasizing that the pace of the global energy transition remains insufficient and inequitable. The study further noted that 93 percent of financing for sustainable energy is concentrated in OECD countries and China, leaving developing nations with limited access to the funds needed to transition to greener energy sources.
Experts warn that without a significant shift in investment priorities, the world risks falling short of climate goals, deepening the reliance on fossil fuels while urgent funding needs in low- and middle-income countries remain unmet. The report underscores the urgent need for banks to reallocate capital toward sustainable projects to ensure a fair and effective global energy transition.
