Archive · 24 Jun 2025
Banks Face Criticism for Funding Fossil Fuels
Imagine banks are giving money to companies that burn stuff that makes the Earth hotter.
This is bad because a hotter Earth causes big problems and costs a lot of money.
Banks are doing this even though it could hurt their own business in the long run.
They're making short-term profits but ignoring the bigger problems like rising costs from climate disasters.
Some politicians in the US want to stop efforts to fight climate change, and banks seem to be following along.
Even though they say they care about the environment, they are increasing their investments in fossil fuels instead of green energy, which could make the economy worse.
Some studies show that a hotter planet will make the economy much smaller.
Banks are increasing funding for fossil fuel projects, despite the negative impacts of climate change.
In 2023, banks delivered $869.4 billion in finance to fossil-fuel companies, reversing a decline from previous years.
This increase in funding aligns with a shift away from ESG considerations in business, especially in the US.
Climate-related costs in the US have reached $7.7 trillion since 2000, impacting GDP growth.
Critics claim that supporting fossil fuels undermines economic growth and banks' long-term financial stability.
- Who
- Major banks, fossil fuel companies, and US politicians.
- What
- Banks are increasing financing for fossil fuel projects, despite the economic damage of climate change.
- When
- In 2023, banks increased funding to fossil fuel companies, reversing a decline from previous years.
- Where
- Primarily in the US, with global economic impacts.
- Why
- Banks prioritize short-term profits over long-term financial stability, despite the economic damage caused by climate change.
Environmental Concerns
Financial Interests
Environmental Protection
Environmental Concerns
Prioritize reducing fossil fuel emissions to protect the environment.
Financial Interests
Focus on short-term profits and economic growth, even if it means increasing emissions.
Investment Priorities
Environmental Concerns
Support green projects over fossil fuels.
Financial Interests
Finance fossil fuels because climate change initiatives are unpopular.
Economic Impact
Environmental Concerns
Believe that combating climate change is critical for economic stability and long-term financial health.
Financial Interests
Downplay the impacts of climate change or deny its severity in the interest of profit.
- Fossil fuel funding in 2023
- $869.4 billion
- Funding increase from 2022
- $162.5 billion
- Total fossil fuel finance since 2016
- $7.9 trillion
- US climate-related costs (Jan 2000)
- $7.7 trillion
- US GDP impact from climate measures rollback
- $1.1 trillion lost over the next decade