Banks Lift Energy Financing 15%, but Clean Power Still Trails Fossil Cash

What happened and why it changed

Banks pushed more money into energy last year, with total capital facilitations up 15% versus 2024 to $2.3 trillion, according to new BloombergNEF research. The pickup came alongside growing electricity demand linked to AI data centers, stronger cooling needs and a rising fleet of electric cars. The study drew on datasets from BloombergNEF, Bloomberg, IJGlobal, RAN and Urgewald.

The clean vs. fossil split

Financing for low‑carbon energy jumped 16% and hit its highest level in five years. Fossil‑fuel deals rose too, up 13%, which is why the gap between the two still matters. BNEF tracks this with an energy supply banking ratio that compares bank‑facilitated low‑carbon financing to fossil‑fuel financing.

To reach net zero, BNEF figures banks need to steer $4 to clean for every $1 to fossil. Right now, they are close to one‑for‑one: 97 cents to clean for each dollar to fossil, based on 2025 data.

Who is leading and who is lagging

BNEF says big U.S. banks trail European rivals on the green share of their energy activity. Among major North American players it analyzed, every one except Citigroup Inc. increased overall energy allocations last year, but a larger slice of that pie went to fossil‑fuel supply.

Europe looks different. NatWest Group Plc put $6.42 toward clean projects for each $1 it directed to fossil fuels, the best ratio in the region that BNEF reported.

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In Asia Pacific, Mitsubishi UFJ Financial Group Inc. ranked largest by energy supply deals last year, and most of its energy financing leaned toward fossil fuels. Asia also shows a sharp split between Japanese and Chinese banks. BNEF found all 10 Chinese banks it reviewed funneled a greater amount to clean energy than to fossil projects. Agricultural Bank of China showed the biggest step up, directing $3.44 to clean tech for each $1 to fossil fuels.

Globally, JPMorgan Chase & Co. facilitated more energy financing than any other bank at $100 billion. BNEF said, "While low-carbon financing fell slightly, fossil-fuel volumes continued to grow," resulting in roughly 63 cents going to clean energy for every dollar the bank routed to fossil fuels.

What this means for your portfolio

The money flow into energy is growing, and clean projects set a five‑year high. But the current near‑parity split between clean and fossil, versus the 4‑to‑1 target BNEF says is needed for net zero, shows how uneven the transition financing still is. That gap can shape project pipelines, timelines and the types of companies that find it easiest to raise capital, which ultimately affects where growth shows up in the real economy.

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