What's Happening?
Stand.earth has released a report highlighting the involvement of major banks in financing oil and gas projects in the Amazon rainforest. Since the ratification of the Paris Agreement, 843 fossil fuel deals involving 330 banks have been documented, totaling
over $15 billion. Notably, $2 billion of these deals were completed between January 2024 and summer 2025. The report criticizes banks such as JP Morgan Chase, Bank of America, and Citi for their significant financial support of these projects. While some banks, including HSBC and BNP Paribas, have improved their exclusion policies, others have increased their financing. Brazilian bank Itaú is identified as the largest financier for Amazon oil and gas projects during 2024-2025.
Why It's Important?
The financing of oil and gas projects in the Amazon rainforest by major banks has significant environmental implications. The Amazon is a critical component of global biodiversity and climate regulation, and its degradation could exacerbate climate change effects. The report underscores the need for banks to adopt more stringent policies to protect sensitive ecosystems. The upcoming COP30 climate summit in Brazil presents an opportunity for global leaders to address these issues and push for more sustainable financing practices. The actions of these banks could influence public policy and corporate strategies regarding environmental sustainability.
What's Next?
The COP30 climate summit, set to begin in Belem, Brazil, on November 10, 2025, will focus on energy transition, climate adaptation, and scaling climate finance. The summit aims to restore faith in the COP process and address the challenges posed by the financing of fossil fuel projects. As the host, Brazil faces the task of leading discussions on these critical issues. The summit could lead to new commitments from banks and governments to reduce financing for environmentally harmful projects and increase support for sustainable initiatives.
Beyond the Headlines
The report by Stand.earth highlights the ethical and environmental responsibilities of financial institutions in the context of climate change. The continued financing of oil and gas projects in the Amazon raises questions about the role of banks in contributing to environmental degradation. This issue also reflects broader challenges in aligning financial practices with global sustainability goals. The pressure on banks to change their policies could lead to long-term shifts in how financial institutions approach environmental and social governance.
