In a quiet and unceremonious end, the Net Zero Banking Alliance (NZBA) has shut down, stating that “no interviews would be offered ‘at this point’.” The silent demise of the once-prominent global banking group follows a noisy period of high-profile departures and intense political controversy.
The controversy erupted after the re-election of Donald Trump in the United States. His “drill, baby, drill” agenda sparked an “anti-woke” backlash against corporate climate policies, putting immense pressure on the NZBA’s American members.
The first to break their silence with action were the six largest US banks. Their coordinated withdrawal from the alliance was a loud and clear signal that they were bowing to political pressure. This move, which included institutions like Goldman Sachs and Wells Fargo, was the beginning of the end for the NZBA.
The silence from the NZBA itself was telling as the exodus continued. European and Japanese banks followed the American lead, with the recent departures of HSBC and Barclays further confirming the alliance’s terminal state. The final announcement of its closure was brief and devoid of any detailed explanation or reflection.
This silent shutdown has been met with a loud response from activists. While some are disappointed, others are openly critical, arguing that the lack of transparency is typical of an organization they always viewed as a “greenwashing” front. They contend that the real conversation about the future of climate finance—a conversation about binding regulation—must now begin in earnest, with or without the participation of the now-defunct alliance.
Picture Credit: www.freerangestock.com
