LONDON (Reuters) -The Net-Zero Banking Alliance will stop operations "immediately" after members voted to stop being a member-based alliance after a number of leading banks left. Instead, resources
Net-Zero Banking Alliance Disbands Following Mass Member Exit
The Disbandment of the Net-Zero Banking Alliance
By Simon Jessop and Virginia Furness
Background and Formation
LONDON (Reuters) -The Net-Zero Banking Alliance is to cease operations after a vote to wind up the group which had already lost many of its members amid allegations from some U.S. lawmakers that membership breached antitrust regulations.
Reasons for Disbandment
The alliance, set up in 2021, was the banking industry's main body leading the sector's global effort to cut carbon emissions. An overhaul was proposed in August after many big banks left, to create a "framework initiative" rather than a membership-based organisation.
Implications for the Banking Sector
"As a result of this decision (vote), NZBA will cease operations immediately," a spokesperson for the group said.
Future of Climate Accountability in Banking
Its resources, developed over several years, will remain accessible to banks seeking guidance on how to set decarbonisation targets.
"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," the spokesperson said.
The decision follows a similar move by a climate group for the insurance industry in 2024. Another climate-focused organisation for the asset management industry is also considering its next steps after facing similar political pressure.
"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 non-profit ShareAction.
Martin said senior bankers needed to use their influence to push up standards for accountability on climate if there was to be any chance of making the clean energy transition happen.
(Reporting by Simon Jessop; editing by Virginia Furness and Jane Merriman)
