Major U.S. banks, including Morgan Stanley, Citigroup, Bank of America, Wells Fargo, and Goldman Sachs, have recently withdrawn from the Net-Zero Banking Alliance (NZBA), a coalition committed to achieving net-zero carbon emissions by 2050.
The banks’ exits are influenced by mounting political and legal challenges. Republican policymakers have expressed opposition to financing restrictions on fossil fuels, citing potential antitrust violations, according to ESG News.
This political pressure has been a significant factor in the banks’ decisions to leave the NZBA.
Their departure from the NZBA underscores the complex interplay between environmental commitments and political dynamics.
Despite their withdrawal from the alliance, these banks have maintained their commitment to decarbonisation, according to Reuters.
The banks plan to continue supporting clients in their transition to sustainable practices, focusing on providing capital and advisory services to facilitate decarbonisation efforts.
They also intend to maintain transparent reporting on their progress toward emissions reduction targets.
This series of departures from the NZBA has raised concerns among climate advocates, who fear that these banks may reduce their commitments to climate-friendly policies and financing of fossil fuel companies.
The exits were influenced by pressure from Republican politicians, warning that membership in NZBA could breach antitrust rules, especially if it led to reduced financing for fossil fuel companies.
Following the news, Bank of America commented, “We will continue to work with clients on this issue and meet their needs.”
Morgan Stanley also remarked, “We aim to contribute to real-economy decarbonisation by providing our clients with the advice and capital required to transform business models and reduce carbon intensity.”
“Our commitment to helping the world transition to net-zero carbon emissions remains unchanged.”
