Petrobras is a perfect case study for anyone seeking to understand the duplicity of the financial system with regard to climate change. The Brazilian oil company plans to invest around €60 billion from 2023 to 2027 to increase its production of crude oil. The projects to be financed include continuing the exploitation of the vast Mero oil field off the coast of Rio. More than 650,000 barrels of oil per day are expected to be produced by this oil field from 2026, representing nearly 1% of global consumption. Petrobras has no intention of financing renewable replacement solutions, of course.

The Brazilian company’s superficial climate commitments are considered among the least specific and least ambitious in the sector by the think tank Carbon Tracker. The rating agency MSCI, on the other hand, clearly judges that its current trajectory will lead to an increase in greenhouse gas emissions, with it needing to reduce them by a factor of ten to align with the goals of the Paris Agreement.

However, this assessment has not harmed the company when it seeks funding. From 2016 to 2023, Petrobras acquired €39 billion through thirteen financial bond issuances – loans provided by investors and arranged by banking groups. This makes it the third highest-funded fossil fuel company through this method, according to data compiled during the "Fossil Finance" investigation, conducted by Investico and Follow the Money, in partnership with a dozen European media outlets, including Le Monde.

The Mexican state-owned oil company Petroleos Mexicanos (Pemex) is another example. The company is heavily indebted, entangled in multiple financial and environmental scandals, and has not announced a climate strategy. Nonetheless, it continues to secure funding, including the issuance of €116 billion in bonds over the past seven years. This has allowed Pemex to proceed with its expansion projects, such as investing $13 billion in the Campeche field in eastern Mexico, whose production is expected to start in 2025 and last for approximately 40 years.

Ever-increasing energy consumption

Pemex, Petrobras, BP, TotalEnergies, Shell, and many more: Our investigation shows that 307 fossil fuel companies that are actively funding expansion projects have together received more than €1 trillion in financial bonds since the beginning of 2016. Each transaction was assisted by very large global banks, including American banks like JPMorgan & Co., Citigroup and Bank of America, as well as European banks such as Deutsche Bank, HSBC, Santander, Crédit Agricole, Société Générale and BNP Paribas.

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