Banks surge fossil fuel financing despite climate pledges

⚡ AI Executive Summary

Major global banks have substantially increased funding for fossil fuel expansion and petrochemical development in recent years, even as many withdrew from climate coalitions and weakened decarbonization commitments. New analyses document record-level financing for oil, gas, and plastics infrastructure, with banks in North America and Japan leading the charge. This trend reflects an industry strategy to offset declining energy demand by shifting fossil fuel use toward plastics, fertilizers, and chemicals—sectors projected to drive half of oil demand growth by 2050. For power systems and grid operators, this financing acceleration signals that fossil fuel infrastructure buildout will likely persist longer than expected, potentially delaying the energy transition and complicating decarbonization roadmaps that depend on fuel-switching timelines.