The Net-Zero Banking Alliance (NZBA), a UN-backed initiative created to align banking practices with Paris Agreement climate goals, has ceased operations following a member vote on the future of the organisation.
According to an NZBA spokesperson: “Members of the Net-Zero Banking Alliance have voted to transition from a member-based alliance and to establish its guidance as a framework.” The spokesperson adds: “As a result of this decision, NZBA will cease operations immediately.”
The spokesperson states: “The Guidance for Climate Target Setting for Banks and supporting implementation resources are the most widely used global banking framework focused specifically on setting decarbonisation targets and will remain publicly available. Individual banks worldwide can continue to use and reference these resources to help develop and deliver on their own net-zero transition plans.”
Established in 2021 and convened by the UN Environment Programme finance initiative, the NZBA grew to nearly 150 member banks at its peak, with the aim to provide guidance and support to help banks and their clients to meet emission standards consistent with the Paris Agreement targets. Adopted in 2015, the Paris Agreement climate goals include a 45% reduction in carbon emissions by 2030 and achieving net-zero emissions by 2050.
The NZBA faced significant challenges at the end of last year as several major financial institutions withdrew their membership between December 2024 and January 2025, with notable departures including Bank of America, Citigroup, JP Morgan, Morgan Stanley, Goldman Sachs, and Wells Fargo. Meanwhile, HSBC became the first UK bank to quit the group in July.
Source: https://www.fintechfutures.com/
