(8 January 2025 – United States) An exodus of major US banks from the UN Net-Zero Banking Alliance (NZBA) has gathered pace ahead of US President-Elect Trump’s inauguration on January 20.
Goldman Sachs announced it was departing the UN NZBA and was quickly followed by Wells Fargo, Citi, BofA, Morgan Stanley and finally JPMorgan. While the NZBA sought to appease large and systemically important banks the efforts ultimately came to nought.
Banks avoided providing a direct motive for leaving, instead declaring they were still committed to helping clients transition to a low-carbon economy and disclosing their actions.
“European banks have complained that they’d love the NZBA guidelines to be stronger, but the US members just won’t let it happen. So it is now time for the Europeans to step up and show that they weren’t just using US obstructionism as an excuse for foot-dragging” stated Reclaim Finance Senior Analyst for Energy Transition, Patrick McCully.
“Banks that have pulled out may now reduce their commitments to climate-friendly policies. The key thing to watch will be weakening of their existing targets and policies noting some banks have ambitious targets for decreasing emissions. Still, we do not expect banks to announce publicly any such changes.”