U.S. Banks Slash Fossil Fuel Financing As Market Forces Outweigh Politics - CleanTechnica

The six largest U.S. banks have collectively reduced their financing for fossil fuel projects—including oil, gas, and coal—by 25% year-on-year through August 1, 2025, dropping from about $97 billion in 2024 to $73 billion this year. This pullback is uneven across institutions, with Morgan Stanley cutting fossil fuel lending by over 50%, JPMorgan Chase by about 7%, and Wells Fargo, still the largest fossil lender, reducing its exposure by 17%. These significant shifts in capital allocation are occurring despite the Trump administration’s explicit support for fossil fuels, including rolling back climate regulations, promoting new leasing, and discouraging financial institutions from boycotting fossil fuel companies. State governments in oil-producing regions have also pressured banks to maintain fossil fuel financing. The banks’ retreat from fossil fuel financing is driven primarily by market forces rather than political directives. Rising interest rates, volatile commodity prices, regulatory risks, and a global transition toward lower-carbon energy have made