Bank fossil fuel financing twice that for alternatives: Study

PARIS

Some of the world's leading banks provided more than twice as much finance for fossil fuels between 2021 and 2024 than for sustainable alternatives, a new study said Tuesday.

The study by Reclaim Finance and partners such as WWF, Urgewald and Rainforest Action Network, said "the biggest 65 banks are not on track when it comes to financing the energy transition."

Top global banks such as HSBC, JP Morgan and Santander had between 2021 and 2024 allocated only $1,368 billion "for sustainable power such as solar, wind, and related infrastructure ... while $3,285 billion was allocated to fossil fuels," it said.

"This.. means for each dollar allocated to fossil fuels, just 42 cents went to sustainable alternatives," it said.

The study said U.S. and Canadian banks provide four times more finance for fossil fuels than for sustainable alternative. Institutions in Asia and Europe were better but still "well below" levels needed for the energy transition.

"Our analysis shows that indeed, 93 percent of financing allocated to sustainable alternatives is concentrated in companies and projects in OECD countries and China, despite the urgent need for financing in the rest of the world," the study concluded.