These U.S. Banks Are Financing Climate Chaos Through Fossil Fuel Expansion
The top U.S. banks, including Bank of America, JPMorgan Chase, Citi, Wells Fargo, Morgan Stanley, and Goldman Sachs, have made net zero promises, but they continue to finance climate chaos through their support of fossil fuel companies. These banks provide funding to companies like Exxon, Saudi Aramco, BP, Shell, TotalEnergies, and Venture Global, which are among the top companies expanding fossil fuels globally. The International Energy Agency (IEA) emphasizes that there is no room for new fossil fuel extraction or infrastructure if we want to limit global warming to 1.5°C. The IEA’s Net Zero by 2050 report highlights the urgency of ending fossil fuel expansion and phasing out existing fossil fuel resources.
A 2022 report, “Wall Street’s Dirtiest Secret: How Fossil Fuel Expansion Depends on Big Bank Finance,” reveals that the Big 6 U.S. banks have provided $445 billion in financing to the top 100 fossil fuel companies since the Paris Agreements agreements were implemented in 2016. JPMorgan Chase, Bank of America, Citi, Wells Fargo, Morgan Stanley, and Goldman Sachs account for 33 percent of the $1.3 trillion funding provided by the 60 biggest banks globally to these companies.
Examples of such financing include ExxonMobil, which has received $55.8 billion from the Big 6 U.S. Banks since 2016 for its fossil fuel expansion efforts. Exxon is involved in exploring and developing new fossil fuel reserves in various locations, facing community opposition and environmental concerns. Another company, Venture Global, has received $4.5 billion in financing from Bank of America, JPMorgan Chase, Morgan Stanley, and Goldman Sachs since 2019. Venture Global is aggressively building out LNG infrastructure in coastal Louisiana, contributing to climate change and being vulnerable to its impacts.
Fossil fuel expansion not only exacerbates climate change but also disregards human rights, as frontline communities in places like the U.S. Gulf Coast face the negative impacts. Activists continue to call on banks to stop financing fossil fuel expansion and invest in a just transition away from fossil fuels.
To achieve a sustainable and just society, it is vital for banks to live up to their net zero promises and prioritize ending support for fossil fuel expansion, which remains a major contributor to climate change and environmental degradation.
🔭 This summary was human-edited with AI-assist.
