Six major U.S. banks and five Canadian banks have left the Net Zero Banking Alliance, a UN-backed initiative to align financial institutions with global climate goals, raising concerns about the future of banking’s role in climate action.
Rosie Frost reports for Euronews.
In short:
- Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo withdrew from the alliance in late 2024, with Canadian banks following in early 2025.
- The exits were driven by political pressure, particularly from Republican state attorneys general who argued the alliance violated competition laws.
- European banks remain committed to the coalition, with some seeing the U.S. departure as a chance to push for stronger climate policies.
Key quote:
“Their departure is distressing because it reduces our scope for action, but it also provides an opportunity for a strong ‘coalition of the willing’ to take the NZBA forward and show what climate action really looks like.”
— Jacco Minnaar, executive board member and chief commercial officer at Triodos Bank
Why this matters:
The banking sector’s role in shaping the future of energy cannot be overstated. With fossil fuel projects still heavily reliant on financing, decisions by major banks to either continue funding these initiatives or pivot to cleaner alternatives hold immense weight. Recent moves by U.S. and Canadian banks to withdraw from stricter climate commitments reflect a growing tension between financial institutions and political or economic pressures, suggesting that the path to decarbonization is far from straightforward.
Related: Big banks and asset managers pull out of climate groups amid political shifts
