The world's largest banks are pouring money into fossil fuels at an alarming rate, locking in more carbon emissions and pushing the planet closer to a climate catastrophe. This is despite international agreements and commitments to limit global warming to 1.5C above pre-industrial levels, a threshold that scientists warn will soon be breached. The situation is particularly dire given the recent surge in fossil fuel lending, which has increased by 8% in just one year, reaching a staggering $906 billion. This trend is led by a handful of banks, with JPMorgan Chase, Bank of America, and Japanese banks MUFG and Mizuho Financial committing the largest amounts. The 'dirty dozen' banks, responsible for 40% of all fossil fuel industry funding, are based in the US, Canada, Japan, China, the UK, and the European Union. This is a deeply concerning development, as it directly contradicts the goals of the Paris climate agreement and the efforts of environmental groups to combat climate change. The situation is further complicated by the political climate, with the resurrection of Donald Trump and his dismissive attitude towards climate change, as well as the recent attack on Iran, which has driven up the cost of oil and gas and benefited fossil fuel companies. The implications of this are far-reaching, as the world's largest banks are not only funding the expansion of fossil fuel sites but also turning their backs on previous environmental commitments. This raises a deeper question about the role of financial institutions in the climate crisis and the effectiveness of voluntary commitments. It is clear that a more active role for financial regulators, legislators, and policymakers is needed to address this issue. The world is running out of time to act, and the consequences of inaction will be catastrophic. The question now is whether the world's largest banks will be held accountable for their actions and whether they will be able to change course before it's too late.
