The Net-Zero Banking Alliance (NZBA), a major UN-backed initiative designed to steer banks toward carbon-neutral investments, has ceased operations effective immediately.
Launched in 2021 under the UN Environment Programme, the alliance’s goal was to help banks reduce the carbon footprint of their lending and investment portfolios, supporting a broader transition to a net-zero global economy by 2050. At its height, the group included nearly 150 financial institutions worldwide.
However, the alliance began losing significant members following the U.S. presidential election, which saw the return of Donald Trump and his pro-fossil fuel agenda. A wave of departures soon followed, starting with six major U.S. banks—including JPMorgan Chase, Goldman Sachs, and Bank of America—and later including financial institutions from Canada and Japan.
After pausing its activities in late August, the NZBA put its future to a vote by its remaining members. The result was a decision to disband the alliance and instead maintain its guidelines as an available framework.
According to a statement, the NZBA’s “Guidance for Climate Target Setting for Banks” will remain accessible for any financial institution to use voluntarily as a reference for developing their own decarbonization plans.
