The Net Zero Banking Alliance (NZBA), a global initiative aimed at fostering climate action among financial institutions, has announced its immediate cessation of operations. This decision comes in the wake of diminishing climate commitments worldwide and follows a significant reduction in its membership, particularly after the re-election of Donald Trump, which many analysts suggest influenced banks to abandon the alliance.
The NZBA, which was organized under the UN Environment Programme finance initiative, was designed to support banks in reducing the carbon footprint of their investments and promoting a transition to net-zero emissions by 2050. At its height, the group boasted nearly 150 members. However, following Trump’s re-election, major U.S. banks, including JPMorgan Chase, Citigroup, and Bank of America, withdrew from the alliance. This trend also extended to European and Japanese banks, with HSBC and Barclays later exiting.
A spokesperson for the NZBA confirmed that the organization would cease operations immediately but stated that its guidance and documentation would remain accessible to banks wishing to use them. The decision to transition from a member-based alliance to a guidance framework reflects a shift in strategy, although the implications of this shift remain unclear.
Responses to the dissolution have varied among stakeholders. Jeanne Martin from the responsible investment group ShareAction expressed disappointment, urging bankers to enhance accountability standards related to climate action. Conversely, Lucie Pinson of Reclaim Finance viewed the alliance as ineffective, arguing it offered little tangible progress toward climate goals. Pinson emphasized the need for policymakers and regulators to intervene critically in reallocating financial flows to address climate change and end fossil fuel financing.
The future of financial sector initiatives related to climate action remains uncertain, particularly in light of political dynamics affecting environmental commitments.
Source: https://www.theguardian.com/business/2025/oct/03/banking-industry-net-zero-alliance-shuts-down-climate-nzba