The Net Zero Banking Alliance (NZBA) has announced its immediate dissolution after a significant downturn in confidence, marked by the departure of several prominent banks. This shift comes in response to evolving political attitudes towards climate change, particularly following influences from U.S. President Donald Trump.
Founded in 2021 prior to the climate discussions in Glasgow, the NZBA initially called upon its members to commit to achieving net-zero emissions by 2050, to establish interim reduction targets for high-emission sectors by 2030, and to provide annual updates on their progress. At its peak, the alliance boasted around 150 members, including many of the largest banks worldwide. However, in recent months, this number has decreased dramatically, starting with a considerable exit of U.S. banks, followed by a steady departure of European institutions.
In light of the ongoing withdrawals, the NZBA temporarily suspended its operations last month, pending a vote on transitioning from a membership-driven model to a framework initiative. Following the conclusion of the vote, which saw remaining members support the transition, a spokesperson confirmed that the alliance will cease all activities immediately.