Net Zero Banking Alliance Dissolves, Citing “Transition” to Framework

The Net Zero Banking Alliance (NZBA) has dissolved, with the group announcing that its members have “voted to transition from a member-based alliance” and will instead establish its guidance as a standalone “framework.” This carefully worded statement marks the official end of the UN-convened coalition, which has ceased all operations effective immediately.
This “transition” comes after a period of intense turmoil, triggered by a hostile political environment in the United States. Following the re-election of Donald Trump on an aggressive “drill, baby, drill” platform, American banks faced a growing “anti-woke” backlash that made their participation in the climate-focused alliance politically untenable.
The alliance began to unravel when its six largest US members, including Bank of America and Goldman Sachs, all withdrew their support. This strategic retreat was a clear attempt to avoid conflict with right-wing politicians, but it also served as the catalyst for the NZBA’s collapse by removing its most powerful and influential contingent.
The domino effect was predictable. With the American banks gone, European and Japanese members began to question the alliance’s relevance and viability. The final phase of its decline saw UK financial leaders HSBC and Barclays also exit this summer, leaving the group a hollow shell.
Despite the official language of a “transition,” most observers see this as a definitive failure. While some advocates are disappointed, critics argue the NZBA was an ineffective body that allowed for greenwashing. They contend that its demise highlights the futility of relying on voluntary commitments and underscores the urgent need for governments to impose binding regulations to force a meaningful shift in capital away from fossil fuels.