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Major banks increase financing for fossil fuel and petrochemical expansion
Major financial institutions are increasingly financing the fossil fuel industry’s expansion into petrochemicals, according to recent reports. Data from the Rainforest Action Network indicates that the world’s top 65 banks contributed $508 billion to companies expanding fossil fuel development in 2025, representing a 27 percent increase from the previous year.
Additionally, the Center for International Environmental Law found that between January 2019 and June 2025, large banks provided at least $591 billion in loans and underwriting to the top 15 petrochemical companies. Of this, $252 billion was directly attributed to petrochemical activities. This trend suggests a strategic pivot by the fossil fuel industry to offset declining demand for oil and gas in transportation and energy by focusing on plastics and fertilizers.
This shift follows the collapse of the Net-Zero Banking Alliance, after the six largest banks in the United States abandoned the voluntary climate coalition. Other major institutions, including HSBC, JPMorgan Chase, and Santander, have also reportedly weakened or scrapped their decarbonization targets.
Entities
Center for International Environmental Law · International Energy Agency · JPMorgan Chase · Net-Zero Banking Alliance · Rainforest Action Network
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Petrochemical products are projected to account for more than one-third of oil demand growth through 2030. pontevedrarecorder.com · republicmonitor.com · krdo.com
- [● 3 SOURCES] $252 billion of the bank funding provided to top petrochemical companies was directly attributable to petrochemical activities. pontevedrarecorder.com · republicmonitor.com · krdo.com
- [● 3 SOURCES] The world’s top 65 banks contributed $508 billion to companies expanding fossil fuel development in 2025. pontevedrarecorder.com · republicmonitor.com · krdo.com
- [● 3 SOURCES] Fossil fuel development funding by the top 65 banks increased by 27 percent in 2025 compared to 2024. pontevedrarecorder.com · republicmonitor.com · krdo.com
- [● 3 SOURCES] Major banks provided at least $591 billion in loans and underwriting to the world’s top 15 petrochemical companies between January 2019 and June 2025. pontevedrarecorder.com · republicmonitor.com · krdo.com
- [● 3 SOURCES] The six largest banks in the United States abandoned the Net-Zero Banking Alliance, leading to the coalition's shutdown in October. pontevedrarecorder.com · republicmonitor.com · krdo.com