

The Net Zero Banking Alliance is a partnership of banks dedicated to reaching net-zero greenhouse gas emissions by 2050.
The Alliance was assembled in 2021 by the U.N. Environment Programme and plays an important role in discouraging the use of fossil fuels, especially throughout the financial sector. Recently, six major U.S. banks have left the NZBA: Morgan Stanley, J.P. Morgan, Bank of America, Goldman Sachs, Citigroup and Wells Fargo. The future of the NZBA is now in question.
Over the past few years, American involvement in the NZBA has been targeted by right-wing politicians. In 2022, antitrust court cases led by Republican attorneys general demanded that some U.S. banks leave NZBA. In November of 2024, a group of states led by Texas sued BlackRock, State Street and Vanguard for embracing pro-climate policies, leading the banks to withdraw from the Alliance.
Trump’s re-election seemingly influenced the banks’ decisions. His policies are anti-climate, and many experts believe the banks caved under pressure from the White House. Patrick McCully, a senior analyst at Reclaim Finance, a French non-profit, says that the banks “don’t want to be the subject of social media rants, and their CEOs don’t want to be yelled at in congressional committees.”
The Alliance is certainly weakened without the major American banks. That said, the NZBA still has a strong global influence, with 141 members. Experts are hoping that the European banks, which make up a majority of the Alliance, will coordinate global climate-friendly initiatives.
“If recalcitrant actors are no longer in the cohort, I would hope the initiative could be more ambitious and ensure its membership will do what is required by bringing all financing activities into line with climate goals,” says Will van de Pol, the CEO of the Australian company Market Forces.
Although no longer a part of the alliance, some U.S. banks have announced that they remain dedicated to climate-friendly initiatives.
“We remain committed to reaching net zero and continue to be transparent about our progress,” commented a spokesperson from Citigroup.
Although the NZBA is weaker without the six major American banks, there is hope that efforts to reach net-zero emissions will remain a priority worldwide. The best way to promote the goals of the NZBA during its uncertain future is by choosing to use banks that have chosen to remain part of the Alliance.
CONTACTS: Where do big-name U.S. departures leave the Net-Zero Banking Alliance? www.thebanker.com/Explainer-Where-do-big-name-US-departures-leave-the-Net-Zero-Banking-Alliance-1736251396.
EarthTalk® is produced by Roddy Scheer & Doug Moss for the 501(c)3 nonprofit EarthTalk. See more at emagazine.com. To donate, visit earthtalk.org. Send questions to: [email protected].