US and Japanese Banks Expand Fossil Fuel Lending as European Rivals Pull Back

June 9, 2026 - 12:48

A new campaign report reveals that American and Japanese banks have significantly increased their financing of fossil fuel projects, while their European counterparts have reduced their market share in the sector. JPMorgan Chase emerged as the dominant player, recording a 12 percent increase in fossil fuel deals compared to previous years.

The report, compiled by a coalition of environmental advocacy groups, tracks lending and underwriting for oil, gas, and coal companies across major global banks. It shows that US banks collectively expanded their fossil fuel financing despite growing pressure from climate activists and some shareholders. JPMorgan alone now handles a substantial portion of global fossil fuel transactions, cementing its position as the largest financier of the industry.

Japanese banks also stepped up their involvement, with institutions like Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group increasing their exposure. This marks a clear divergence from European banks, which have been scaling back their fossil fuel portfolios under stricter regulatory requirements and investor demands for climate action.

The findings come at a time when international climate goals call for a rapid reduction in fossil fuel use. Critics argue that the continued flow of capital from US and Japanese banks undermines efforts to transition to cleaner energy sources. Bank representatives have defended their lending practices, pointing to commitments to net-zero emissions by 2050 and investments in renewable energy projects.

However, campaigners say the data shows a persistent gap between bank pledges and actual lending behavior. They are calling for stronger policies to restrict financing for new fossil fuel developments, especially in the wake of record global temperatures and extreme weather events linked to climate change.