In a dramatic shift, major U.S. banks, including Goldman Sachs, Wells Fargo, Citigroup, Bank of America, and Morgan Stanley, have exited the Net-Zero Banking Alliance (NZBA) within weeks. JPMorgan Chase, the largest U.S. bank, is reportedly next.
The departures reflect growing political pressure as the GOP targets climate-focused initiatives. According to insiders, NZBA anticipates further U.S. exits, citing an unfavorable “political environment.”
While NZBA aimed to align financed emissions with net-zero goals, critics argue its impact has been limited. Activists now call for stricter regulations to compel banks to reduce fossil-fuel financing. Despite rising global temperatures, data reveals Wall Street banks have increased funding for fossil fuels since NZBA’s 2021 inception.
European banks, subject to stricter climate regulations, remain committed to NZBA, contrasting with the U.S. retreat. Experts warn the lack of self-regulation in the finance sector undersc