UN-backed climate banking alliance operation shuts down

The Net-Zero Banking Alliance (NZBA), a UN-backed group that worked to promote carbon-neutral investments by banks, has announced its immediate closure. The decision comes at a time when climate commitments in the United States and Europe are weakening.

The alliance was launched in 2021 under the UN Environment Programme’s Finance Initiative. Its goal was to encourage banks to reduce the carbon footprint of their loans and investments and support the shift toward a net-zero economy by 2050. At its peak, nearly 150 banks were part of the group.

However, the NZBA began losing members late last year after Donald Trump won the US presidential election with his “drill, baby, drill” slogan supporting more oil and gas production. Several major US banks — including JPMorgan Chase, Goldman Sachs, and Bank of America — withdrew, followed by lenders from Canada and Japan.

In August, the NZBA paused its work while waiting for a member vote on the future of the alliance. The final decision was announced Friday.

“Members of the Net-Zero Banking Alliance (NZBA) have voted to transition from a member-based alliance and to establish its guidance as a framework,” an NZBA spokesperson said. “As a result of this decision, NZBA will cease operations immediately.”

Although the group is shutting down, its resources will remain available. Banks can still use the “Guidance for Climate Target Setting for Banks” to set their own decarbonisation targets.

“Individual banks worldwide can continue to use and reference these resources to help develop and deliver on their own net-zero transition plans,” the NZBA added.

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