Banks finance more fossil fuels than the energy transition

The analysis, conducted in conjunction with organizations such as Reclaim Finance, WWF, Urgewald and the Rainforest Action Network, "shows that the 65 largest banks (...) are not on track to finance the energy transition," its authors stressed.

Globally, major banking institutions (HSBC, JP Morgan, Santander, etc.) provided $1.368 trillion (trillions) in financing for energy sources such as wind and solar during the period, compared to more than double that amount ($3.285 trillion) for fossil fuels.

In other words, for every dollar spent on financing fossil fuels, only 42 cents are allocated to the energy transition.

This proportion is far from being in line with the recommendations of the International Energy Agency (IEA), according to NGOs, nor with the ambitions of the 2015 Paris Climate Agreement, which aims to reduce greenhouse gas emissions and limit global warming.

The study used the scope of so-called sustainable energy sources, a more restrictive term than the renewable energy category, according to Reclaim Finance, since it excludes, for example, bioenergy or certain hydroelectric projects.

This may explain discrepancies with banks' own data when they publish it.