Introduction

Energy security and access to affordable energy have become central to public debate, particularly following geopolitical tensions in 2026. While fossil gas is often portrayed as a reliable transition fuel, this claim is increasingly at odds with lessons from recent energy crises and scientific evidence requiring a phase-out of fossil fuels. This report examines how European banks position themselves regarding the expansion of gas power and its consequences for climate targets, public health, and energy affordability.

European banks are fuelling gas power expansion

Between 2021 and 2024, the 24 largest European banks allocated US$41.9 billion to companies developing more than 320 new gas plants. This annual support increased by 6% globally during this period. Financing is highly concentrated, with 63% provided by seven French and UK banks: BNP Paribas, Crédit Agricole, Groupe BPCE, Société Générale, Barclays, HSBC, and Standard Chartered. UK banks allocated US$15.2 billion, while French banks provided US$11.2 billion of total financing.

The report identifies 20 gas power developers as the main recipients of this funding, accounting for 80% of total financing. Leading developers include Duke Energy, Saudi Electricity Company, and NRG Energy. Despite 31 expansion countries announcing net-zero pledges, banks continue to support these projects. Although major banks have set 2030 decarbonisation targets for the power sector, only La Banque Postale has implemented a sectoral policy with credible restrictions on gas power expansion.

The harmful impacts of gas power

Gas power generation significantly impacts human health by emitting pollutants such as nitrogen oxides and fine particulate matter (PM2.5). In 2019, gas power generation in the EU27 and UK caused up to 2,864 premature deaths. Furthermore, the long operational life of gas plants (25-40 years) locks in greenhouse gas emissions, delaying the decarbonisation of the power sector which advanced economies must achieve by 2035.

Economically, gas power exposes households to severe price volatility. Following the Russian invasion of Ukraine, gas prices increased by 532% in August 2022 compared to January 2021. This volatility directly impacts wholesale electricity prices and contributes to energy poverty. In addition to CO2, the gas supply chain releases methane, a greenhouse gas 86 times more damaging than CO2 over a 20-year period.

Conclusion and recommendations for banks

The report concludes that gas power is not a bridge fuel but a barrier to the energy transition. Banks are recommended to immediately end all financial services for gas power expansion and phase out exposure to gas power by 2035 in OECD countries and by 2045 elsewhere. Financial institutions should end funding for all new gas projects, including coal-to-gas conversions, and condition support for utilities on an immediate end to gas development and the publication of detailed phase-out timetables.