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JPMorganChase is the latest bank to leave the Net-Zero Banking Alliance (NZBA). This follows exists by five of America’s largest banks namely, Citi, BofA, Morgan Stanley, Goldman Sachs, and Wells Fargo, since December.
In a statement provided to ESG Today, a JPMorganChase spokesperson said:
“JPMC is ending our membership in the Net Zero Banking Alliance (NZBA). We will continue to work independently to advance the interests of our Firm, our shareholders and our clients and remain focused on pragmatic solutions to help further low-carbon technologies while advancing energy security. We will also continue to support the banking and investment needs of our clients who are engaged in energy transition and in decarbonizing different sectors of the economy.”
It is understood that the departures are in preparation for Trump’s inauguration on 20th January. Trump has been open in his campaign about his desire to reverse environmental regulation and “drill, baby, drill”.
Paddy McCully, a senior analyst at the campaign group Reclaim Finance, said: “The sudden exodus of these big US banks out of the NZBA is a lily-livered effort to avoid criticism from Trump and his climate denialist cronies.”
As the political landscape evolves, alliances appear to shift in tandem.
The NZBA was created in 2021 in response to a greater need for climate action in reaching the Paris Agreement’s goals. Those who joined, committed to implementing strategies that would deliver net zero by 2050.
Although US bank participation has declined, the NZBA continues to maintain a strong membership base of 142 banks spanning 44 countries. This coalition remains a significant force in global banking, overseeing $64 trillion in assets, with a slight shift in emphasis toward European banks such as HSBC, Barclays, and BNP Paribas.
McCully said the departure of the US banks would give those remaining the opportunity to go further. He said: “By strengthening their commitments, NZBA banks can demonstrate that they have not simply used US obstructionism as an excuse to maintain the NZBA’s weak position.”