Major banks and governments continue funneling billions into fossil fuel expansion, fueling climate risks despite pledges to reduce emissions.
Holly Young reports for Deutsche Welle.
In short:
- Fossil fuel companies have seen unprecedented investment and expansion, despite climate goals; in 2022, net income for these firms hit a record $4 trillion.
- Approximately 96% of oil and gas companies are currently pursuing new reserves, with 40% of coal firms also expanding mining operations.
- State subsidies and private investments total over $1.7 trillion, significantly bolstered by government support, while only a fraction of energy investment is directed toward renewables.
Key quote:
“This is especially concerning because countries have actually made commitments to reduce or reform their fossil fuel subsidies.”
— Natalie Jones, energy policy adviser at the International Institute for Sustainable Development
Why this matters:
Continued investment in fossil fuels jeopardizes climate goals, risking extreme weather and resource depletion. As financial institutions back new exploration projects, commitments to transition away from fossil fuels become less feasible, locking future generations into a high-emissions reality.
Read more: Banks continue funding fossil fuels despite global climate agreements
