The Net-Zero Banking Alliance (NZBA) has voted to cease operations with immediate effect, following months of attrition as leading members withdrew under political pressure in the United States.
Formed in 2021 as the banking sector’s flagship body for driving down carbon emissions, the NZBA had faced mounting scrutiny from some U.S. lawmakers who alleged that membership raised antitrust concerns. In August, an overhaul was proposed to shift the group from a membership-based alliance to a looser “framework initiative”, but the plan failed to secure enough support.
“As a result of this decision, NZBA will cease operations immediately,” a spokesperson confirmed. However, the alliance’s resources — including the widely used Guidance for Climate Target Setting for Banks and related implementation tools — will remain publicly available to financial institutions seeking to set decarbonisation targets.
The move mirrors the collapse of the insurance industry’s climate alliance in 2024, while a similar initiative for asset managers is now weighing its future under comparable political strain.
Campaigners expressed frustration at the decision. “It is bitterly disappointing to see the world’s biggest banks step away from accountability on their commitments to prevent the worst effects of global heating,” said Jeanne Martin, Co-Director of Corporate Engagement at non-profit group ShareAction. She urged senior bankers to use their influence to raise standards on climate accountability if the transition to clean energy is to succeed.
