Last week, as flames began tearing through greater Los Angeles, claiming multiple lives and forcing more than 100,000 people to evacuate, JP Morgan became the sixth major US bank to quit the Net Zero Banking Alliance (NZBA) since the start of December. A smaller story, certainly, but the departure of top US banks from the NZBA in the weeks since Donald Trump’s re-election nonetheless speaks to a seismic political shift prompting major financial institutions to turn away from the climate-related commitments they made in the optimistic years after the Paris agreement.
The NZBA is a voluntary network of global banks committed to “align lending and investment portfolios with net zero emissions by 2050”. It is part of the umbrella Glasgow Financial Alliance for Net Zero (GFANZ), which counts among its membership dozens of “alliances” covering the various segments of global finance. For its part, the NZBA requires new members to submit science-aligned targets within 18 months of joining, alongside disclosing plans for and status updates on meeting them.
