Barclays Abandons Position in Climate Banking Alliance, Latest in Series of British Lenders
Barclays, a leading British bank, has announced its departure from the Net Zero Banking Alliance (NZBA), citing a lack of sufficient membership in the organisation as the reason for its exit [1][3][4]. This move follows a series of high-profile departures from the NZBA, including those of HSBC and several major U.S. banks [2].
The NZBA, established to support banks in transitioning to net-zero carbon emissions, has seen its membership drop from 144 banks in October 2024 to 126 banks across 44 countries by August 2025 [2]. The alliance's current status is weakened, but it continues to operate.
Barclays and other departing banks, however, have reaffirmed their commitment to climate action. Barclays, for instance, maintains its goal to be a net-zero bank by 2050 and to mobilize $1 trillion in sustainable finance by 2030 [1][5]. The bank's statement on its website confirms the decision to withdraw from the NZBA [1].
The departure of Barclays and other major banks raises questions about the NZBA's ability to retain influence amidst political and industry headwinds. Some members are pursuing net-zero goals independently, which could challenge the alliance's role [1][2][3][5].
The exodus from the NZBA is not isolated. Political pressures, particularly from Republican politicians in the U.S. who have warned financial institutions about potential legal and political risks tied to participation in climate-focused groups, have played a role in the departures [1][3].
The challenge for the NZBA now lies in reassessing its strategies to retain and attract members. The future of the alliance's membership and effectiveness remains uncertain following these departures [2].
This situation underscores the complexities faced by financial institutions as they navigate the delicate balance between climate action and political pressures. As Barclays and other banks move forward with their net-zero ambitions outside of the NZBA, the alliance may need to adapt to remain relevant in the evolving landscape of climate finance.
[1] Barclays' official statement: https://www.barclays.com/news/barclays-announces-withdrawal-from-the-net-zero-banking-alliance/ [2] Financial Times: https://www.ft.com/content/a888461e-0d91-414f-b76b-9b7871f320e8 [3] Reuters: https://www.reuters.com/business/finance/barclays-leaves-net-zero-banking-alliance-citing-lack-membership-2025-08-18/ [4] Bloomberg: https://www.bloomberg.com/news/articles/2025-08-18/barclays-quits-net-zero-banking-alliance-amid-exodus-of-major-banks [5] Barclays' net-zero ambitions: https://www.barclays.com/sustainability/our-approach/net-zero/
The departure of Barclays from the Net Zero Banking Alliance has sparked concerns about the alliance's ability to remain influential, given the increasing political pressures against climate-focused groups. Despite withdrawing from the alliance, Barclays retains its commitment to climate action, with a goal to achieve net-zero emissions by 2050 and mobilize $1 trillion in sustainable finance by 2030. The exodus underlines the complexities faced by financial institutions in balancing climate action with political pressures, necessitating the Net Zero Banking Alliance to adapt and evolve in the changing landscape of climate finance and environmental science.
