UN-Backed Net-Zero Banking Alliance Shuts Down

On 3rd October 2025, the Net-Zero Banking Alliance (NZBA), an UN-backed initiative aimed at promoting carbon-neutral investments by banks, announced its immediate shutdown amid faltering climate commitments in the United States and Europe.

Key Points

Formation and Purpose: Launched in 2021 under the UN Environment Programme's Finance Initiative, the NZBA sought to reduce the carbon footprint of banks’ loans and investments and support a net-zero economy by 2050.
Membership Peak: At its height, the alliance had nearly 150 member banks globally, representing major financial institutions across multiple continents.
Impact of U.S. Politics: Following US President election with a pro-fossil fuel agenda, the alliance began losing members, including six major U.S. banks such as JPMorgan Chase, Goldman Sachs, and Bank of America, along with Canadian and Japanese lenders.
Decision to Cease Operations: Members voted to transition from a member-based alliance to a framework-based approach, leading to the immediate closure of NZBA while still allowing banks to use its
Guidance Availability: Although the alliance has shut down, banks worldwide can continue referencing its guidance to develop and implement their own net-zero transition plans.
Softening of Climate Goals: Earlier in 2025, NZBA had softened its language, changing mandatory “guidelines” into optional “guidance” and turning requirements into recommendations, reflecting decreasing enforcement power.