New billion-krona loans to fossil fuel companies from Swedish banks
Major Swedish banks have lent an additional 60 billion kronor to fossil fuel companies in the past two years, even though the companies continue to expand their fossil fuel operations. Among other things, to oil companies in the Arctic that continue to hunt for oil ever further north.
Nordea and SEB have provided nearly SEK 14 billion in new loans and financing to oil companies expanding their operations in the Arctic in 2024 and 2025. Nordea accounts for SEK 7.4 billion and SEB has lent SEK 6.5 billion. The banks' lending to the oil companies comes at a time when the EU is clearly opposed to new oil and gas extraction in the Arctic and is advising all member states against buying Arctic oil.
"It is remarkable and unreasonable that Swedish banks are financing new oil extraction in the Arctic at the same time as the climate crisis worsens. It undermines our ability to achieve climate goals. Nordea and SEB must immediately stop supporting this", says Karin Lexén, Secretary General of the Swedish Society for Nature Conservation.
The loans go to companies that want to open the world's northernmost oil field
The money has gone to the two most active oil companies in the Arctic: Norway's Equinor and Aker BP. At the same time, the EU clearly opposes new oil and gas exploration in the Arctic and wants to see a ban. The EU advises member states against buying Arctic oil.
"This goes against the banks' own climate promises. I think many Swedish bank customers will be upset. It is their money that is used to give loans to the oil companies", says Jakob König, who heads Fair Finance Guide in Sweden.
Last year, Nordea weakened its sustainability policy and removed restrictions on how far north oil companies can explore for new oil and gas in the Arctic. The companies the bank finances are now planning to open Wisting, the world's northernmost oil field.
Risk of violations of Sami rights
The expansion of the oil and gas industry in the Arctic also poses major risks for the Sami people living along the coast of the Barents Sea in Northern Norway. Sami industries such as reindeer herding, hunting and fishing depend on functioning ecosystems. Oil spills and the heavily expanded infrastructure required by the oil industry can have major consequences for Sami areas.
“The Arctic is not an oil reserve. It is people's homes, reindeer grazing lands and fishing waters where Sami industries have been conducted for generations. Banks should not finance projects on Sami lands where we have not given our consent,” says Aslak Holmberg, chairman of the Central Sami Organization in Finland (SSG), who wrote a case study in the report.
Handelsbanken and Swedbank stand out positively
The review shows, however, that Handelsbanken stands out positively, continuing to zero out loans to fossil fuel companies, just as it has for several years. Swedbank also stands out positively, with significantly lower fossil fuel lending than other banks. Swedbank has also reduced its fossil fuel lending the most of all the banks.
“This will probably make many of their bank customers happy. In this way, their banks can contribute to the solution to the climate crisis,” says Jakob König.
