By Ross Kerber
June 18 (Reuters) - Top global banks raised their lending for fossil fuel projects last year, a new report shows, a trend running counter to the hopes of climate activists that such financing would keep scaling down.
There's some interesting context around the report, which you can read about below. This week I'm also flagging stories on the newest name-licensing venture by President Donald Trump's family business, and a follow-up on the big blackout that hit Spain and Portugal this spring.
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Banks get back on board with fossil fuel lending
Reversing years of declines, top global banks increased their financing for the fossil fuel industry 23% to $869 billion in 2024, climate activist groups said in a new report. JPMorgan JPM.N led the trend, putting $15 billion more into the sector last year.
The report was released by groups including the Sierra Club, the Rainforest Action Network and Reclaim Finance. The authors said the lenders are enabling projects that will confound efforts to transition the global economy away from fossil fuels, the goal of the deal struck by nations at the COP28 climate summit in Dubai in 2023.
"To see the numbers jump so high right after that just means the financial sector is at odds with the commitments the world's governments have made," said Allison Fajans-Turner, Policy Lead at Rainforest Action Network and a co-author of the report, at a briefing on the document.
Top banks have quit the sector's biggest climate coalition, the Net-Zero Banking Alliance, under political pressure. Meanwhile U.S. utilities have announced billions of additional dollars in capital spending this year, with some doubling their five-year investment plans, often to power planned data centers used in artificial intelligence and cryptocurrencies. Many involve fossil fuels such as an Entergy Texas plan to build two new natural gas power plants.
Other types of energy investments are also rising. The International Energy Agency has forecast a record $3.3 trillion in global energy investment for 2025, with clean energy investments including renewables, nuclear and energy storage accounting for $2.2 trillion of that sum.
JPMorgan backed $53.5 billion worth of fossil fuel efforts in 2024 through lending and underwriting activities, according to the report. The bank said the increase last year was "driven by favorable conditions in the bond market that boosted underwriting volumes, including those related to fossil fuels."
For every $1 used to finance "high-carbon" projects like oil-or-gas fired power plants, JPMorgan financed $1.29 worth of "low-carbon" projects like solar or wind energy, the bank said in a report last fall.
"We believe our data reflects our activities more comprehensively and accurately than estimates by third parties," said bank spokesperson Charlotte Powell.
Bank of America BA.N was the second-biggest fossil fuel backer last year with $46 billion through lending and underwriting, $12.7 billion more than in 2023. A representative declined to comment.
Citigroup C.N was in third place with $44.7 billion last year, $14.9 billion more than in 2023. A representative said the bank works with clients to support clean energy. "Our approach reflects the need to transition while also continuing to meet global needs for energy security, particularly in this time of increasing electricity demand," the representative said.
Company News
U.S. President Donald Trump's family name will grace a new mobile phone business on the networks of three major wireless carriers, a deal with many conflicts of interest and "a scary new normal for Corporate America," according to our columnist Jennifer Saba.
China's market regulator gave conditional approval for global agribusiness Bunge Global's BG.N merger with Glencore-backed grain handler Viterra, clearing the final hurdle for the $34 billion mega-deal.
A miscalculation by Spanish power grid operator REE REDE.MC contributed to the massive blackout across Spain and Portugal on April 28, according to a government report, which also faulted power generators.
On my radar
Investors are worried about a broader regional conflict in the Middle East - really this is on everyone's radar. Things may be different by the time you read this, but as of Tuesday stocks were down and oil prices were up as fighting between Israel and Iran continued for a fifth day.
Plans to shrink or abolish the Federal Emergency Management Agency by the Trump administration and push some disaster response costs on to states make for uncertain times in the town of Lake Lure, N.C., my colleague reported from the resort town.
A fossil fuel financing comeback https://reut.rs/44euXXA
(Reporting by Ross Kerber in Boston; Editing by David Gregorio)
((ross.kerber@thomsonreuters.com; (617) 412 0093;))
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