The Net-Zero Banking Alliance, a UN-backed initiative searching for carbon-neutral investments by banks, introduced on Friday (October 3, 2025) its instant shutdown — at a time of faltering climate commitments within the United States and Europe.
Launched in 2021 beneath the UN Environment Programme’s Finance Initiative, the NZBA aimed to get banks to slash the carbon footprint of their loans and investments, and assist drive the transition to a net-zero financial system by 2050.
At its peak, the group counted almost 150 members.
But the alliance had been dropping members since late final 12 months, after Donald Trump received the U.S. Presidential election together with his “drill, baby, drill” mantra selling oil and fuel manufacturing.
The NZBA had paused its actions in late August whereas ready for the results of a vote by its members.
“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 mentioned in an announcement.
“As a result of this decision, NZBA will cease operations immediately,” the spokesperson mentioned.
The NZBA mentioned banks can nonetheless use the initiative’s “Guidance for Climate Target Setting for Banks”, which focuses on 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,” it mentioned.
‘Bitterly disappointing’
ShareAction, a London-based charity that advocates for accountable funding, lamented the tip of the alliance.
“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,” mentioned Jeanne Martin, co-Director of Corporate Engagement at ShareAction.
“Senior bankers need to be far more courageous in this decisive moment for all our futures and must use their influence to push up standards for accountability on climate if we are to stand any chance of making the clean energy transition happen,” Ms. Martin mentioned.
Six main U.S. banks — together with JPMorgan Chase, Goldman Sachs and Bank of America — had already stop the alliance following Trump’s election, adopted by Canadian and Japanese lenders.
British banking big Barclays was one the newest to stop the alliance in August.
“With the departure of most of the global banks, the organisation no longer has the membership to support our transition,” it mentioned on the time.
Earlier this 12 months, NZBA softened its language on climate targets, turning “guidelines” into “guidance” and necessities into suggestions, based on inside paperwork seen by AFP.
