Net-Zero Banking Alliance Closes Amid Major Bank Exodus
The Net-Zero Banking Alliance (NZBA) has announced its closure, marking a significant shift in the global banking sector's approach to climate change. Launched in 2021 with a commitment to transition emissions from lending activities to net zero by 2050, the NZBA's cessation follows a series of high-profile exits by major banks like us bank and pnc bank.
The NZBA's demise began in late 2024 when Goldman Sachs and other major Wall Street banks withdrew from the alliance. This was followed by the departure of Canadian banks in early 2025. The exodus continued into summer 2025, with HSBC, UBS, and Barclays leaving, citing a lack of global bank support for the transition to net-zero emissions.
The NZBA faced pressure from various fronts, including Republican politicians in the U.S. who criticized the alliance's climate-focused initiatives. In recent months, several major us banks, including Wells Fargo, Bank of America, Citigroup, and Morgan Stanley, also withdrew from the NZBA. The banks' departures came in quick succession, with Bank of America and Citigroup withdrawing on the same Tuesday in early December 2024, and Morgan Stanley following soon after on a Thursday.
In April 2025, NZBA members agreed to changes that eliminated the mandatory alignment with the 1.5°C warming goal. However, these changes were not enough to retain the support of many major banks. The NZBA's expansion of its requirements in 2024 to include capital markets activities under banks' net zero goals may also have contributed to the banks' decisions to leave.
The NZBA's cessation may present new opportunities for global bank participation in the net-zero transition. As the alliance winds down, banks like pnc bank will need to consider their own strategies for addressing climate change and meeting sustainability goals. Despite the NZBA's closure, the importance of banks' role in financing a low-carbon future remains undiminished.
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