Major US Banks Exit Net-Zero Banking Alliance Amid Political Pressure

Citigroup and Bank of America (BofA) have announced their decision to exit the Net-Zero Banking Alliance (NZBA), following the recent departures of Wells Fargo and Goldman Sachs. The NZBA, a group of global banks committed to achieving net-zero carbon emissions by 2050, has faced growing challenges as financial institutions scale back their climate commitments.

Citi, which has made progress toward its own net-zero goals, stated that it would leave the alliance, while BofA affirmed it would continue addressing climate issues with clients but without being part of the NZBA. This shift underscores the tension between climate action and political resistance, particularly from Republican policymakers who oppose limiting financing for the fossil fuel industry.

The move comes amidst legal challenges, as Texas and 10 other Republican-led states recently filed antitrust lawsuits against major asset managers like BlackRock, Vanguard, and State Street, accusing them of reducing coal production and raising energy prices through their climate initiatives.