Net-Zero Banking Alliance Folds After Mass Exodus by Members

The Net-Zero Banking Alliance is to cease operations after a vote to wind up the group which had already lost many of its members amid allegations from some U.S. lawmakers that membership breached antitrust regulations.

The alliance, set up in 2021, was the banking industry’s main body leading the sector’s global effort to cut carbon emissions. An overhaul was proposed in August after many big banks left, to create a “framework initiative” rather than a membership-based organization.

“As a result of this decision (vote), NZBA will cease operations immediately,” a spokesperson for the group said.

Its resources, developed over several years, will remain accessible to banks seeking guidance on how to set decarbonisation targets.

“The Guidance for Climate Target Setting for Banks and supporting implementation resources are the most widely used global banking framework focused specifically on setting decarbonization targets and will remain publicly available,” the spokesperson said.

The decision follows a similar move by a climate group for the insurance industry in 2024. Another climate-focused organization for the asset management industry is also considering its next steps after facing similar political pressure.

“It’s bitterly disappointing to see the biggest banks in the world vote to step away from accountability around their commitments to prevent the worst effects of global heating,” said Jeanne Martin, co-Director of Corporate Engagement at non-profit ShareAction.

Martin said senior bankers needed to use their influence to push up standards for accountability on climate if there was to be any chance of making the clean energy transition happen.

(Reporting by Simon Jessop; editing by Virginia Furness and Jane Merriman)