Global banks have pocketed $26 billion in earnings since 2015 by funding companies tied to tropical forest destruction, a new report shows. This comes as Brazil gears up to host COP30 in Belém, where leaders will push for a major fund to protect rainforests.
Report Reveals Massive Bank Earnings
A fresh investigation highlights how major financial players have gained huge profits from deals linked to deforestation. The study, released in October 2025, tracks income from loans, investments, and other services to firms accused of clearing forests in key regions like Brazil, Indonesia, and beyond.
This analysis covers 50 companies across sectors such as palm oil, pulp and paper, soy, beef, rubber, and timber. It points out that banks earned about $7 million daily on average from these activities over the past decade.
The total jumps to $104.7 billion when including all business lines, not just deforestation related ones. Recent data also shows overall financing for such companies hit $425 billion in the same period.
Experts say this underscores a broken system where green promises clash with real world actions. As climate talks loom, the findings add pressure on banks to change course.
Top Banks and Regions in the Spotlight
US based institutions led the pack, pulling in $5.4 billion. Major names include asset managers and lenders that handle vast sums for global clients.
European Union banks followed with $3.5 billion, while UK firms earned $1.2 billion. Chinese banks added $1.2 billion, mostly through credit deals, despite their rules on sustainable lending.
Brazilian lenders have surged in this space too, accounting for a big share of global financing to forest risk companies. This trend raises questions ahead of Brazil’s role at COP30.
Other countries like Indonesia contribute as well, with local banks supporting commodity giants. The report notes that profits do not always match deforestation impact, as some sectors like beef drive more land loss but generate less bank income.
Here is a breakdown of earnings by region:
| Region | Earnings (in billions) | Key Players |
|---|---|---|
| United States | $5.4 | Asset managers and big banks |
| European Union | $3.5 | Lenders with global reach |
| United Kingdom | $1.2 | Investment firms |
| China | $1.2 | Credit focused institutions |
| Other countries | $15.9 | Local banks in Brazil and Indonesia |
Sectors Driving the Destruction
Pulp and paper topped the list, generating 48 percent of the income. This sector often involves large scale plantations that replace natural forests.
Palm oil came next at 41 percent, fueled by demand for products like cooking oil and biofuels. Soy and beef each contributed smaller shares but remain major deforestation drivers in places like the Amazon.
Rubber and timber rounded out the list, with 3 percent and 1 percent respectively. These industries expand into tropical areas, harming biodiversity and local communities.
Recent assessments show the world lost 8.1 million hectares of forest in 2024 alone, far from goals to halt deforestation by 2030. Agricultural growth and fires are key culprits, per the 2025 Forest Declaration report.
Link to COP30 and Brazil’s New Fund
Brazil prepares to launch its Tropical Forests Forever Facility at COP30, starting November 10, 2025. The initiative aims to raise $125 billion for forest protection, with Brazil pledging $1 billion.
Indonesia has matched that commitment, but major economies like the US, UK, Germany, and France have not yet joined. The fund targets nature based climate solutions, yet critics call it a potential false fix without strict rules.
This contrasts sharply with bank profits from deforestation. Pledges at the summit include quadrupling sustainable fuels and aligning with 1.5 degree Celsius goals.
Social media buzz reflects public outrage, with posts highlighting how finance fuels forest loss while talks promise change. Brazil’s recent 11 percent drop in Amazon deforestation offers hope, but experts warn more action is needed.
Calls for Stronger Regulations
Advocates demand national laws to block funds for deforesting firms. The report urges banks to adopt zero tolerance policies on forest risk investments.
Key steps include:
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- Requiring full supply chain checks for commodities.
- Boosting transparency in financial deals.
- Supporting indigenous rights in affected areas.
- Shifting investments to reforestation projects.
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Without these, the cycle of destruction continues, experts say. The 2025 State of Finance for Forests report notes global forest funding nearly doubled to $23.5 billion, but it falls short of needs.
Path Forward for Forests and Finance
Tying finance to conservation could turn the tide. With COP30 on the horizon, stakeholders eye real commitments over empty words.
The contradiction between bank earnings and climate goals must end. Stronger oversight and ethical investing offer practical ways to protect vital ecosystems.
Share your thoughts on how banks can help save forests. What steps do you think leaders should take at COP30? Comment below and spread the word to raise awareness.
