More than 40 major banks globally have come together as part of a United Nations-initiated alliance, committing to align their lending and investment practices with the goal of achieving net-zero emissions by 2050.
The Net-Zero Banking Alliance comprises 43 banks, including prominent institutions such as Barclays, Citi, and Shinhan, representing assets totaling approximately $28.5 trillion across 23 countries. This group is a founding member of the Glasgow Financial Alliance for Net Zero (GFANZ), which is chaired by Mark Carney, the UN Special Envoy on Climate Action and Finance. Carney emphasizes that GFANZ will serve as a critical forum to ensure collaboration within the financial sector, facilitating an accelerated transition to a net-zero economy.
The banking alliance aims to bolster and expedite the implementation of decarbonization strategies by providing a coherent international framework and guidelines for action. Members will benefit from shared learning experiences, drawing insight from leading banks in this initiative.
In addition to the overarching goal for 2050, alliance members will establish specific targets for 2030 focused on priority sectors where they can exert the most significant effect, ensuring active engagement in their clients’ decarbonization processes.
John Kerry, the U.S. Special Presidential Envoy for Climate, notes that as nations work towards decarbonization, the substantial investments made by these institutions in climate finance reflect a deepening understanding of the importance of a low-carbon global economy for their business models. He adds, “Ultimately, their commitment of capital and assets, alongside adherence to rigorous standards and transparent reporting, will accelerate the transition to this new economy, generate numerous job opportunities, and enhance our collective capacity to address the climate crisis.”