Joint Press Release: 'Fossil Fuel Finance Report 2026' Published

Environmental NGOs, including the US-based Rainforest Action Network (Headquarters: San Francisco, USA; Japan: Shibuya-ku, Tokyo; hereinafter RAN), today, the 9th, released a new report titled 'Fossil Fuel Finance Report 2026: Banking on Climate Chaos' (Note 1, 17th edition, Japanese summary version, English name: Banking on Climate Chaos 2026).

This report is an annual compilation of lending and underwriting to approximately 2,900 fossil fuel companies by the world's top 65 banks. The analysis found that the amount provided by banks to the fossil fuel industry in 2025 was $906 billion, an 8% increase compared to 2024. Furthermore, over the ten years since the Paris Agreement came into effect, the amount provided to oil, gas, and coal companies totaled $8.7 trillion. This report is the world's most comprehensive open data on private bank financing for fossil fuels.

Figure 1: 'Fossil Fuel Finance' 2025 World Ranking (Lending and underwriting to all fossil fuel sectors, in USD)

The report also reveals that JPMorgan Chase remained the world's largest fossil fuel financier, investing $58 billion in fossil fuel companies in 2025, a 12.6% increase year-on-year. It was followed by Bank of America in second place with $47 billion, and Japan's Mitsubishi UFJ Financial Group (MUFG) in third place also with $47 billion, a 21% increase year-on-year. Other megabanks included Mizuho Financial Group (Mizuho) in 4th place and Sumitomo Mitsui Financial Group (SMBC) in 9th place. The financing provided by the top 12 banks for fossil fuels accounts for nearly 40% of the total from approximately 2,000 banks worldwide.

Additionally, financing for companies actively expanding their fossil fuel businesses surged by 27% in 2025, reaching $508 billion. Such financing is incompatible with the goal of limiting global warming to 1.5 degrees Celsius.

The energy crises of the 2020s (Russia's invasion of Ukraine and the US-Israeli attacks on Iran) demonstrate that dependence on fossil fuels is a structural factor in global instability. Three-quarters of the world's population living in countries that import fossil fuels pay the price each time supply is disrupted.

'Fossil Fuel Finance Report 2026' Overview and Key Findings

A comprehensive report showing the financing (lending and underwriting) provided to the fossil fuel sector by the world's top 65 private banks. It investigates and analyzes financing to approximately 2,900 fossil fuel companies. The target period is 2021 to 2025, the period since the International Energy Agency (IEA) published its 'Net Zero Roadmap' (Note 2), with annual and cumulative totals calculated. Data is aggregated and analyzed for the entire fossil fuel industry and for companies expanding fossil fuels (unlike previous years, sector-specific rankings for LNG, oil sands, etc., are not published, but data for upstream, midstream, and downstream sectors, as well as by fuel type such as oil, gas, and coal, is included). It also includes an analysis of overall trends from 2016 to 2025, the period since the Paris Agreement came into effect.

Findings

Financing for fossil fuel companies (2025): $932 billion (+9% vs. 2024)

Financing for fossil fuel companies (since Paris Agreement, 2016-2025): $8.6 trillion (oil, gas, and coal sectors)

Financing for fossil fuel expansion companies (2025): $508 billion (+27% vs. 2024 = all-time high)

US banks' financing for fossil fuels accounts for 32% of the global total, up from 28% in 2021, making them the world's largest source of fossil fuel capital. European banks show a clear declining trend. BNP Paribas reduced its fossil fuel-related transactions by 28%, UBS by 36%, and La Caixa by 34%. Conversely, Standard Chartered increased by 28%, Deutsche Bank by 20%, and HSBC by 16%.

The report emphasizes the limited effectiveness of voluntary bank initiatives on climate change and the need for stronger regulatory measures. Following the collapse of the Net-Zero Banking Alliance (NZBA), banks have weakened their policies. Of the 15 North American banks surveyed, 12 have no substantive policies on fossil fuels. JPMorgan Chase and Goldman Sachs have abandoned their exclusion policies for coal and Arctic financing, switching to case-by-case due diligence standards.

Trends among Japan's Three Megabanks

Japan's three megabanks ranked in the worst 12 for financing in 2025 (MUFG 3rd, Mizuho 4th, SMBC 9th). The combined total for the three banks was $125 billion, meaning just three banks out of 65 accounted for over 13.7% of the total. Mizuho ranked 2nd, MUFG 4th, and SMBC 9th in financing for companies expanding their fossil fuel businesses in 2025.

Figure 2: Comparison of Megabank Fossil Fuel Finance (in millions of USD)

Figure 3 (Left): Trends in Megabank Financing for Fossil Fuels (Lending and Underwriting, in millions of USD) Figure 4 (Right): Trends in Megabank Financing for Fossil Fuel Expansion Companies (Lending and Underwriting, in millions of USD)

Megabanks are particularly financing companies expanding LNG operations. MUFG ranked 1st, Mizuho 3rd, and SMBC 5th in financing for companies with large-scale LNG expansion plans (Note 3) in 2025. The majority of the three banks' fossil fuel financing is provided to fossil fuel companies based in the United States.

Figure 5: Breakdown of Japanese Bank Financing by Country/Region (by location of fossil fuel company, 2025)

Trends by Fossil Fuel Sector and Key Findings

(▲ indicates an increase in financing from 2024 to 2025)

▲ Midstream Sector and LNG (Methane Gas) Boom: In 2025, the top 65 banks increased financing for companies expanding midstream fossil fuel operations by 184% year-on-year, or $116 billion. The three companies that received the most financing from banks in 2025 were all oil and gas midstream operators. LNG is the fastest-growing sector, but only 5 of the top 65 banks have policies excluding financing for LNG export terminals. Venture Global Inc. (USA, Note 4) borrowed $33 billion in 2025, the largest amount for any fossil fuel company, illustrating how LNG companies are profiting massively from geopolitical conflicts.

▲ Financing for Upstream (Production and Exploration): Increased from $192 billion to $217 billion.

▲ Financing for Midstream (Processing, Storage, Pipeline Transport): Increased from $139 billion to $255 billion.

▲ Financing for Gas Power Generation: Increased from $154 billion to $199 billion.

▲ Expansion of Coal Mining: Financing surged by 77% in 2025, reaching $84 billion.

▲ Expansion of Coal-Fired Power Generation: Increased by 40% in one year, reaching $81 billion.

Comments from Authors and Authoring Organizations

Nico Luciani, RAN Research Director (Co-author)

"Wall Street banks' primary concern is profit protection. Our primary concern is..."