Fri Oct 03 15:29:50 UTC 2025: ## Summary:
The UN-backed Net-Zero Banking Alliance (NZBA), aimed at driving carbon-neutral investments by banks, has shut down due to dwindling membership following Donald Trump’s U.S. Presidential election and subsequent shift away from climate commitments. Banks, including major U.S., Canadian, Japanese, and British institutions, exited the alliance after Trump’s election. The NZBA softened its climate goals earlier this year, ultimately transitioning to a framework of guidance rather than a membership-based alliance. ShareAction, a responsible investment charity, expressed disappointment, urging banks to maintain accountability for climate commitments.
## News Article:
**UN-Backed Net-Zero Banking Alliance Collapses Amid Retreat From Climate Commitments**
**Paris – October 3, 2025** – The Net-Zero Banking Alliance (NZBA), a UN-backed initiative designed to steer banks towards carbon-neutral investments, announced its immediate shutdown today. The move comes amidst a weakening of climate commitments in the United States and Europe, fueled by Donald Trump’s presidency and a renewed focus on fossil fuel production.
Launched in 2021, the NZBA aimed to assist banks in reducing the carbon footprint of their loans and investments, facilitating the transition to a net-zero economy by 2050. At its peak, the alliance boasted nearly 150 members.
However, the NZBA began losing members after Trump’s election, which ushered in a policy shift prioritizing oil and gas production. Major U.S. banks like JPMorgan Chase, Goldman Sachs, and Bank of America were among the first to depart, followed by Canadian and Japanese lenders. British banking giant Barclays exited in August.
“With the departure of most of the global banks, the organisation no longer has the membership to support our transition,” a spokesperson for Barclays said at the time of its departure.
Faced with dwindling support, the NZBA softened its climate goals earlier this year, transforming its guidelines into non-binding recommendations. Today, the organization announced its transition to a non-member-based framework and ceased operations immediately.
While the alliance itself is dissolving, the NZBA stated that its “Guidance for Climate Target Setting for Banks” will remain available for individual banks worldwide to use in developing their own net-zero transition plans.
ShareAction, a London-based charity advocating for responsible investment, condemned the closure. “It’s bitterly disappointing to see the biggest banks in the world vote to step away from accountability around their commitments to prevent the worst effects of global heating,” said Jeanne Martin, co-Director of Corporate Engagement at ShareAction. She urged senior bankers to “be far more courageous” and uphold climate accountability standards.
The collapse of the NZBA raises concerns about the future of global efforts to align financial institutions with climate goals and the pace of the transition to a net-zero economy.
First Piper 