Global Banks’ Financing of the Energy Transition Has Stalled

The global banking sector failed to make any progress in financing the clean energy transition last year, with capital allocations to oil, gas and coal continuing to outpace money spent on renewables.

The world’s leading banks spent just 89 cents on low-carbon energy companies and projects such as wind, solar and grids for every dollar they allocated to fossil fuels, according to an analysis by BloombergNEF. The figure is virtually unchanged from 2023, BNEF said.

For the world to have a chance of limiting global warming to the critical threshold of 1.5C, capital allocations to green projects need to be ...