Report exposes role of African banks in growing fossil fuel financing

Global financial institutions funnelled a staggering $869 billion into fossil fuel companies in 2024, a new report shows, with African banks also playing a role in channelling billions into projects on a continent increasingly vulnerable to climate change.

The “Banking on Climate Chaos” report, released by a coalition of green groups, highlights a troubling trend of increased fossil fuel financing despite previous commitments and escalating environmental warnings.

The report shows that in 2024, fossil fuel companies with operations in Africa secured $2 billion in funding from banks headquartered across the continent. While modest in global terms, this marks a significant increase in capital backing oil and gas expansion in some of the world’s most climate-vulnerable regions.

The Banking on Climate Chaos 2025 report reveals that global fossil fuel financing rose sharply to $869 billion in 2024, a $162 billion increase from the previous year. Two-thirds of the world’s 65 largest banks raised their fossil-related investments, reversing a downward trend and exposing what climate activists see as a crisis of credibility.

“By injecting a staggering $869bn into fossil fuel financing in 2024 alone, the world’s largest banks fund the climate chaos that fossil fuel companies wreak on people and communities worldwide,” David Tong, global industry campaign manager at Oil Change International, told the Guardian.

But Africa’s growing share in this funding mix is turning heads.

African Banks, Global Climate Costs

Leading African lenders—including Standard Bank, ABSA, Rand Merchant Bank, and Nedbank—have been named among the financiers of controversial fossil ventures such as the Cabo Delgado LNG projects in Mozambique. The multi-billion-dollar methane gas operations, led by TotalEnergies, ExxonMobil, and Eni, have not only fueled climate fears but also deepened security and human rights concerns in Mozambique’s restive north.

“In Mozambique, the fossil gas industry has already resulted in debt and worsened socioeconomic conditions for people,” said Anabela Lemos, director of Mozambican NGO Justiça Ambiental!, in the report. “Banks involved in the project should distance themselves from this bloody conflict and withdraw their financing.”

Communities in Cabo Delgado have faced forced displacement, poor compensation, and violence linked to a years-long insurgency. Government forces tasked with protecting fossil infrastructure have also been accused of human rights violations, including a 2021 massacre of civilians.

Banks Retreat from Climate Pledges

Globally, major financial institutions are now under fire for what critics say is a coordinated rollback of climate commitments. Six U.S. banking giants – including JPMorgan Chase, Citigroup, Bank of America, and Goldman Sachs – withdrew from the Net Zero Banking Alliance in January, ahead of Donald Trump’s return to the U.S. presidency.

The report notes that JPMorgan alone pumped $53.5 billion into fossil fuels in 2024, topping the global list. European lender Barclays also significantly ramped up its financing.

“This year, banks have shown their true colours—many have walked away from climate commitments and doubled down on fossil fuel expansion, even as global temperatures break records,” said Lucie Pinson, director of Reclaim Finance and a co-author of the report.

While African leaders continue to call for climate justice and demand a just energy transition, environmental groups say rising fossil fuel finance—especially through regional banks—risks locking the continent into outdated energy systems and worsening ecological crises.

Extreme weather events, including devastating floods across West and Central Africa in 2024, displaced millions and damaged food systems. Yet, climate-aligned finance continues to lag behind fossil investments.