Global Banks Earn Nearly $3 Billion in Green Debt Fees, Outpacing Fossil Fuels for Fifth Year

The world's largest banks have generated approximately $3 billion in revenue from climate-related bond and loan transactions so far in 2026, exceeding the $2.9 billion earned from financing oil, gas and coal companies, according to data compiled by Bloomberg. Reported on 2 November 2026, the figures mark the fifth consecutive year in which green debt financing has generated higher fees than fossil fuel transactions. Although the gap has narrowed, the trend represents a significant change from 2020, when banks earned almost twice as much in fees from fossil fuel financing as from green initiatives.

 

Bank of China, BNP Paribas and Deutsche Bank recorded the highest underwriting fees from green bond transactions during 2026, while Mitsubishi UFJ Financial Group, Crédit Agricole and Société Générale led in revenues from arranging green loans. In contrast, US banks dominated fossil fuel bond and loan financing, with Wells Fargo, JPMorgan Chase and Citigroup among the leading institutions. The findings indicate that sustainable debt markets have become an established source of banking revenue, although conventional energy financing still generates substantial fees.

 

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Separate research from BloombergNEF shows that growth in green financing fees has not yet translated into a comparable shift in overall energy financing. Its Energy Supply Banking Ratios report found that banks arranged approximately $1.15 trillion in low-carbon energy financing during 2025, compared with $1.19 trillion for fossil fuels. The global low-carbon-to-fossil-fuel financing ratio rose from 0.95:1 in 2024 to 0.97:1 in 2025, remaining below BloombergNEF's estimated 4:1 ratio needed this decade to align with global climate objectives.

 

Regional differences remain substantial. Europe recorded the highest low-carbon-to-fossil-fuel financing ratio at 2.5:1 in 2025, supported by offshore wind investment, while China's ratio increased to 1.6:1, driven partly by greater electricity grid financing. North America's ratio declined to 0.5:1 as financing for oil, gas and coal increased. BloombergNEF found that fossil fuel financing in North America rose by $92 billion during 2025, compared with an $8 billion increase in low-carbon financing.

 

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The findings highlight the growing commercial importance of sustainable finance while showing that banks continue to support significant fossil fuel investment. Higher revenues from green debt transactions do not necessarily mean more capital is being directed toward low-carbon projects, as fee income and financing volumes measure different aspects of banking activity. The continued expansion of green lending and bond underwriting reflects rising demand for climate-related financing, but capital remains unevenly distributed across regions and energy sectors.

 

Source: Bloomberg