Ceasing Momentarily: Actions of the Net Zero Banking Alliance
The Net-Zero Banking Alliance (NZBA), a UN-backed coalition dedicated to advancing net-zero goals through financing activities, has undergone significant changes this year.
Launched in 2021, the NZBA expanded rapidly from 43 banks at its inception to over 140 banks representing $74 trillion in 2024. However, a series of high-profile departures has led to a pause in its activities.
In July 2025, banks such as Bank of America, Citigroup, Morgan Stanley, HSBC, Sumitomo Mitsui Financial Group (SMFG), UBS, and Barclays departed from the alliance. The reasons for these departures are believed to be due to pressure from Republican politicians in the U.S., who have warned financial institutions of potential legal violations from their participation in climate-focused alliances.
The NZBA initially focused on transitioning operational and attributable greenhouse gas emissions from lending activities to align with net-zero pathways by 2050. In April 2024, the NZBA issued new guidelines for climate target setting for banks, expanding its requirements to include capital markets activities.
In April 2025, the NZBA members agreed to a series of significant changes to the alliance's framework and principles. The NZBA has proposed a significant restructuring, including dropping its membership-based format.
The NZBA is currently in a member vote to decide on transitioning from a membership-based alliance to a new framework initiative. The results of this vote will be released at the end of September.
Meanwhile, the Net-Zero Investment Association (NZIA) was discontinued in 2024 due to high-profile departures. Another member, the New Zealand Bankers' Association (NZBA), announced it will suspend its primary activities, adapting to a changing political and regulatory environment. The NZBA encourages the banking sector to remain steadfast in implementing their net-zero commitments.
Several banks, including Goldman Sachs, its major Wall Street peers, and their Canadian counterparts, have recently departed from the NZBA. Barclays stated that the NZBA no longer had the membership to support its transition.
As the NZBA navigates these changes, it continues to work towards its goal of promoting net-zero financing and supporting the global transition to a sustainable economy. The results of the member vote, scheduled for the end of September, will provide insights into the alliance's future direction.
