US and Japanese banks dramatically increased fossil fuel financing in 2025, with JPMorgan Chase leading the pack at $58 billion, up 12% from the previous year. Global banks collectively provided $906 billion in fossil fuel financing, marking an 8% increase as financing for liquefied natural gas and coal projects accelerated before the Middle East conflict.

European banks reduced their market share, with BNP Paribas cutting fossil deals by 28% and UBS by 36%. Japanese banks increased their overall fossil fuel deals by $17 billion, with Mitsubishi UFJ Financial Group jumping 20% to $47 billion. By contrast, 12 of 15 North American banks no longer maintain meaningful fossil fuel commitments following political shifts in the US.

The financing surge reverses a brief decline after the 2021 COP26 climate summit when many institutions pledged to reduce climate risk. Banks have since rolled back restrictions on fossil fuel lending and reduced climate-risk staff. The 65 banks tracked increased financing to midstream expansion companies by 84%, with LNG the fastest-growing segment. This reflects a strategic reorientation toward traditional energy sources amid ongoing concerns about energy security and affordability.