TOXIC FINANCE

The report details the financial mechanisms supporting over 100 planned petrochemical projects in the US, primarily in the Gulf South. It finds that a small number of global banks and asset managers provide the majority of this capital, despite mounting market overcapacity, litigation risks, and environmental harms. The document calls for immediate divestment and the adoption of strict climate-aligned policies by financial institutions.

• Between 2019 and 2025, banks provided $133 billion in financing to the US petrochemical industry. Four institutions—Citi, Bank of America, JPMorgan Chase, and Mizuho—were responsible for 32% of this total.
• As of September 2025, institutional investors held over $1.6 trillion in companies leading the US petrochemical expansion. Five investors—Vanguard, BlackRock, State Street, Capital Group, and Berkshire Hathaway—controlled 31% of these investments.
• The petrochemical sector faces structural financial risks, including a global plastics market in a state of overcapacity and a speculative market for ammonia production that may lead to similar overcapacity issues.
• The industry is exposed to escalating legal liabilities, including a $10 billion settlement for PFAS in municipal water systems and a $2 billion settlement with New Jersey, alongside emerging lawsuits regarding plastic recycling claims and microplastics.
• Petrochemical production is a major driver of the climate crisis, accounting for up to 10% of global greenhouse gas emissions and over 300 million metric tons of CO2-equivalent emissions annually in the US.
• The report identifies 'ESG-washing' in the sector, finding $10.3 billion in ESG-linked investments in companies fueling US petrochemical expansion, with BlackRock providing over $4 billion of this capital.
• Chemical recycling is characterized as an inefficient and harmful technology with significant barriers to commercialization, yet it continues to receive equity investments from petrochemical and packaging firms.
• Public subsidies and tax breaks significantly lower the cost of petrochemical projects; for example, Shintech's Plaquemine complex saved $533 million between 2013 and 2023 through property tax exemptions.

APA

Center for International Environmental Law (n.d.). TOXIC FINANCE. https://www.ciel.org/wp-content/uploads/2026/03/Toxic_Finance_Report.pdf

Chicago

Center for International Environmental Law. TOXIC FINANCE. n.d. https://www.ciel.org/wp-content/uploads/2026/03/Toxic_Finance_Report.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=TOXIC FINANCE |url=https://www.ciel.org/wp-content/uploads/2026/03/Toxic_Finance_Report.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallawndtoxic, author = {{Center for International Environmental Law}}, title = {{TOXIC FINANCE}}, institution = {Center for International Environmental Law}, url = {https://www.ciel.org/wp-content/uploads/2026/03/Toxic_Finance_Report.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }