Morgan Stanley announced its decision to withdraw from the Net-Zero Banking Alliance (NZBA), on 2 January 2025, becoming the latest US financial institution to leave the global climate coalition.
The bank did not specify reasons for its departure, but US Republican lawmakers have criticised NZBA membership, claiming it could breach antitrust laws by limiting financing for fossil fuel companies.
Despite its exit, Morgan Stanley emphasised its commitment to supporting the transition to net-zero carbon emissions. “We aim to contribute to real-economy decarbonisation by providing our clients with the advice and capital required to transform business models and reduce carbon intensity,” the bank stated. It also pledged to continue reporting on its progress toward 2030 emissions-reduction targets.
Morgan Stanley’s move follows similar decisions by Citigroup, Bank of America, Wells Fargo, and Goldman Sachs in recent weeks.
Environmental advocates have called for stronger regulatory oversight. “These exits reveal the inadequacy of voluntary commitments and underscore the urgent need for state-level leadership and regulation,” said Vanessa Fajans-Turner, executive director of Environmental Advocates NY.
The withdrawals highlight the tension between political pressure and financial institutions’ climate commitments as the debate over decarbonisation strategies intensifies.
