The Net Zero Banking Alliance (NZBA), a global group of banks committed to reducing carbon emissions, has announced its immediate closure following a wave of departures triggered by Donald Trump's re-election. The alliance, which once had nearly 150 members, said remaining members voted to transition from a member-based alliance to a framework, effectively ending operations.
The NZBA, convened by the UN Environment Programme finance initiative, encouraged members to cut the carbon footprint of their investments and support the transition to net zero by 2050. However, it began losing members after Trump's election on a platform of deregulating the energy sector and promoting fossil fuels. Six major US banks, including JPMorgan Chase and Goldman Sachs, quit before his inauguration, followed by European and Japanese lenders. HSBC became the first British bank to leave in July, with Barclays following weeks later.
Sustainable investment campaigners offered mixed reactions. Jeanne Martin of ShareAction called the closure 'bitterly disappointing', urging bankers to show courage on climate. In contrast, Lucie Pinson of Reclaim Finance said she 'won’t mourn' the NZBA, arguing it created an illusion of action and was doomed to fail. She stressed that genuine climate action requires intervention from policymakers and regulators, particularly to end fossil fuel financing.
The NZBA stated that its guidance and documentation will remain publicly available for individual banks to use. A spokesperson declined further comment or interviews.
