For the second consecutive year, banks worldwide have generated more revenue from financing environmentally friendly projects than from traditional fossil fuel businesses. In 2023, the largest banks globally saw their revenue from financing green projects surpass that from the traditionally dominant fossil fuel sector.
According to Bloomberg, leading lenders generated around $3 billion from green loans last year, while comparable revenue from oil, gas, and coal businesses amounted to less than $2.7 billion.
European banks, led by French bank BNP Paribas, have been particularly progressive in this transformation, while American institutions like Wells Fargo and J.P. Morgan continue to dominate the fossil fuel business.
BNP Paribas leads the movement, having generated nearly $130 million from green financing, followed by French competitor Credit Agricole ($96 million) and British financial giant HSBC ($94 million).
On the other hand, Wells Fargo leads the fossil fuel sector with $107 million in revenue, closely followed by J.P. Morgan and Japanese bank Mitsubishi UFJ, both with $106 million in revenue.
The outperformance of European financial institutions compared to their American counterparts reflects the trend of stricter environmental regulations in Europe. Banks in Europe face penalties and higher capital requirements if they misjudge climate risks.
In the United States, the situation is characterized by inconsistent regulatory attitudes and political resistance. For example, Texas threatens to financially isolate financial institutions that commit to net-zero emissions goals.
Overall, banks provided $583 billion in green bonds and loans last year, compared to $527 billion for fossil fuels. In 2022, banks invested $594 billion in environmental projects and $558 billion in oil, gas, and coal, according to Bloomberg data.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇫🇷 🇺🇸 🇯🇵 🇬🇧 |
| Sentiment | very positive |
| Relevance Score | 1 |
| People | Credit Agricole, HSBC, J.P. Morgan, Wells Fargo, BNP Paribas |
| Companies | Credit Agricole, HSBC, J.P. Morgan, Wells Fargo, BNP Paribas, Mitsubishi UFJ |
| Currencies | None |
| Securities | None |
