UN's Net-Zero Banking Alliance Dissolves Amid US Bank Withdrawals
The UN-backed Net-Zero Banking Alliance (NZBA) has dissolved, raising concerns about the credibility of voluntary net-zero initiatives. The alliance, established in 2021 with nearly 150 banks, aimed to align lending and investment portfolios with a net-zero pathway by 2050. However, it has faced a series of withdrawals, including major US banks like Wells Fargo, Goldman Sachs, Bank of America, Citigroup, and Morgan Stanley, leading to its eventual dissolution.
The NZBA's disbanding follows a trend of US banks leaving the alliance. After Donald Trump's election in 2016, several prominent banks withdrew in a series of exits between 2024 and 2025. HSBC left earlier in 2025. These withdrawals accelerated over the past year due to geopolitical shifts, regulatory uncertainty, and energy security concerns.
The NZBA's dissolution comes after it softened its stance, converting binding 'guidelines' into non-binding 'guidance'. This move raised concerns about the credibility of commitments. While the alliance's guidance on climate target-setting will remain available, enforcement and accountability mechanisms have been dismantled. The NZBA has been replaced with a resource hub, removing common reporting and scrutiny mechanisms.
The dissolution of the NZBA raises questions about the future of global climate finance and the effectiveness of voluntary net-zero initiatives. With major banks withdrawing and the alliance's dismantling, the path towards a net-zero banking sector by 2050 faces significant uncertainty. Advocacy groups have expressed frustration, urging senior bankers to enforce climate accountability standards across the sector.
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