Fossil Fuels See Renewed Support as Banks Back Investments Under Trump

Rapid Summary

• banks worldwide increased financing for fossil fuel projects too $869 billion in 2024,up by 25% from 2023,according to the “Banking on Climate Chaos” report.
• Over the last eight years, the world’s largest banks have funded nearly $8 trillion worth of fossil fuel expansion projects.
• Following President Trump’s pro-fossil fuel policies, many banks abandoned net-zero pledges and climate agreements by mid-2025. Four of the five top fossil-fuel-financing banks are U.S.-based.
• Climate experts note worsening environmental impacts as global warming crosses a critical threshold of 1.5 degrees Celsius above pre-industrial levels in 2024.

– the U.S experienced 27 billion-dollar natural disasters in 2024 with combined damages exceeding $182 billion and over 568 fatalities.
– Liquefied Natural Gas (LNG), identified as the fastest-growing fossil fuel with a carbon footprint worse than coal over its lifespan, remains heavily exported by the U.S.

• LNG projects globally have resulted in displacement and human rights abuses:

– In Mozambique, LNG growth led to forced resettlements and paramilitary-funded violence against locals.
– A report found increased pollution and health risks disproportionately affecting low-income U.S. communities near gas facilities.

Indian Opinion Analysis

India’s energy outlook could be significantly affected by trends highlighted in this report. The renewed push for fossil fuels might create volatility in international energy markets that India depends on for imports like LNG-a sector flagged for both environmental risk and potential price hikes globally due to oversupply concerns. Diverging global priorities on energy transition could also impact India’s commitments under international agreements such as COP27.

Domestically, India’s progress toward renewables may offer resilience against fluctuating prices or political headwinds concerning carbon-based fuels abroad; however, accelerating policy efforts is vital given increasing reliance on energy imports amid economic growth objectives.

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