Against a backdrop of climate urgency and massive investment needs to decarbonize the real economy, the French Banking Federation (FBF) has published its reference annual study. The results show a long-term structural commitment by French credit institutions, characterized by a massive redirection of financial flows toward low-carbon projects and an accelerated withdrawal from the fossil fuel sector.
A Major Shift Toward Low-Carbon Portfolios and Renewables
Green and sustainable credit outstanding on French banks’ balance sheets registered historic growth of 37% over two years, reaching €510 billion in 2025 (up from €471 billion in 2024, representing an annual increase of 8.3%). This trend demonstrates a continuous strategic reallocation of capital flows within the Paris financial center to support the transition of corporations, local authorities, and individuals.
For every single euro allocated to fossil fuel production, French banks now deploy €17 in green and sustainable credits and €3.4 specifically targeting renewable energy (RE), compared to €13 and €2.7 respectively in 2024.
French support for the clean energy sector illustrates this dynamic:
- €102 billion in renewable energy financing outstanding in 2025, representing a spectacular 92% increase in just three years.
- Four major French banking groups now rank among the global Top 10 in renewable energy project finance.
- Green and sustainable bond underwriting (Green Bonds) reached €103 billion structured and distributed on behalf of their clients in 2025.
An Accelerated and Unambiguous De-exposure to Fossil Fuels
In parallel with the deployment of low-carbon solutions, the reduction of traditional fossil fuel exposure is accelerating. French banks’ total exposure to hydrocarbon production decreased by 18% in 2025 (a 17% drop year-on-year) to €30 billion, representing just 0.28% of their total balance sheets.
This divestment is even more drastic in thermal coal, which has fallen to a negligible 0.01% of balance sheets, even though coal still represents 27% of global energy consumption and its global production grew by 1% (source: IEA). Furthermore, according to the IJ Global 2025 ranking, no French bank is among the world’s top 20 fossil fuel financiers, whether in terms of direct lending or bond underwriting.
Investing in Human Capital and Broader Environmental Challenges
To support the sustainable transformation of businesses, local authorities, and individuals, French banks are investing heavily in human capital. Nearly 500,000 employees have been trained in Corporate Social Responsibility (CSR) issues worldwide. This capability upgrade allows bank representatives to offer practical guidance on broader ecological challenges, including water management, biodiversity preservation, climate adaptation, and the circular economy.
“Banks are fully aware that the climate emergency is the defining issue of our generation. According to experts, France could experience a temperature increase of +2.7°C by 2050. 2050 is tomorrow in our profession. In 2025, €510 billion in green and sustainable credits were allocated—a near 40% increase in two years—demonstrating once again the strong mobilization of French banks.”
— Daniel Baal, President of the FBF and of the Climate & Biodiversity Commission