US and Japanese banks boost fossil fuel finance, undermining climate pledges

A new campaign report reveals that major US and Japanese banks are increasing financing for fossil fuel projects, contradicting their public climate commitments. JPMorgan Chase saw a 12% rise in fossil fuel deals, while Japanese banks fund LNG terminals and coal plants across Asia. Overall, top US banks provided over $150 billion to the fossil fuel industry last year. The report highlights a divide between European banks, which are reducing fossil fuel exposure under stricter regulations, and US/Japanese institutions that face less pressure. This capital flow locks in decades of emissions and makes it harder for renewable projects to compete for investment. The Global South bears the brunt of climate impacts while being starved of green finance. Regulatory action and investor pressure are growing, but without binding disclosure rules and carbon pricing, banks can continue funding fossil fuels. The article underscores the gap between climate rhetoric and financial reality, with implications for global emission targets and climate justice.