Net Zero Banking Alliance Halted Amid Trump's Backlash and Bank Exits

The Net Zero Banking Alliance (NZBA), a group led by Mark Carney, has halted activities amid a growing backlash against environmental capitalism. The group was founded in 2021 to encourage banks to align their lending and investment portfolios with the aims of the Paris Agreement. However, its popularity plummeted after Donald Trump re-entered the White House and launched attacks on sustainable finance. The NZBA has paused all activities after many of the world's biggest banks, including JPMorgan Chase, Bank of America, and Citigroup, quit the group.

The Net Zero Banking Alliance (NZBA), a prominent green banking initiative led by Mark Carney, has paused all activities following a significant backlash against environmental capitalism. The NZBA, launched in 2021 to encourage banks to align their lending and investment portfolios with the aims of the Paris Agreement, has seen a dramatic decline in popularity since Donald Trump re-entered the White House [1].

The NZBA announced its pause in operations after many of the world’s largest banks, including JPMorgan Chase, Bank of America, and Citigroup, exited the group. The exodus began before Trump’s inauguration in January and continued throughout the year. HSBC and Barclays, which helped launch the NZBA in 2021, also quit the alliance this summer [1].

The NZBA’s suspension comes amid growing criticism of the organization’s effectiveness and relevance. The group plans to hold a vote in September to potentially overhaul its operations, shifting away from its current “membership-based alliance” structure [1].

The NZBA was initially launched at Joe Biden’s virtual climate summit in April 2021, with 43 of the world’s largest banks committing to align their portfolios with the Paris Agreement. However, its popularity plummeted after Trump’s election campaign, which included repeated attacks on Biden’s climate policies and a pledge to end the “green new scam” [1].

The NZBA’s suspension highlights the challenges faced by environmental initiatives in a political climate that is hostile to sustainable finance. The pause in activities underscores the need for these initiatives to adapt and find new ways to gain traction and support.

References:

[1] https://hk.news.yahoo.com/carney-net-zero-group-halts-151749018.html