Six Major US Banks Exit Net-Zero Alliance Amid Political Shifts
The financial sector is witnessing a seismic shift as six major U.S. banks, including JP Morgan, Citigroup, Bank of America, Morgan Stanley, Wells Fargo, and Goldman Sachs, have withdrawn from the Net-Zero Banking Alliance (NZBA). This collective decision comes just days before the inauguration of Donald Trump as the 47th President of the United States, a leader known for his staunch opposition to climate-focused policies.
This dramatic exodus is seen by many analysts as a preemptive move to fend off anticipated backlash from conservative politicians targeting corporate “wokeness.” Trump’s campaign promises—focused on deregulating the energy sector, dismantling environmental rules, and advancing fossil fuel production—set the stage for this climate policy retreat.
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For years, these banking giants championed climate-conscious initiatives, aligning their practices with the NZBA’s goals of achieving net-zero greenhouse gas emissions by 2050. However, with the political pendulum swinging, they appear to be recalibrating their priorities to avoid potential conflicts with the incoming administration. Paddy McCully of Reclaim Finance criticized the withdrawals, labeling them as a “cowardly move” driven by fear of criticism from climate skeptics.
Each bank offered varying rationales for its decision. Citigroup emphasized its intention to focus on mobilizing capital to emerging markets for a low-carbon transition. JP Morgan and Goldman Sachs reaffirmed their commitment to pragmatic climate solutions while maintaining flexibility outside the alliance. Others, like Wells Fargo, provided little to no justification, further fueling speculation.
Despite the departures, analysts like Toby Kwan from the Carbon Trust argue that the NZBA’s mission is far from derailed. The alliance still retains 141 members, representing nearly 40% of global banking assets. This ongoing participation underscores the continued global momentum toward a sustainable financial future.
While the political climate in the U.S. has steered some institutions away from collective climate goals, the NZBA’s remaining members now have an opportunity to fortify their commitments, setting a more ambitious path forward. For many, this moment signals a test of resilience for climate action in the financial sector amidst shifting political winds.
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