Net-Zero Banking Alliance Pauses Activities, Puts Future Structure to Member Vote

• NZBA launches member vote on shifting from membership alliance to framework initiative.
• The pause follows high-profile bank departures amid political and regulatory pushback.
• Results of the vote are expected by end of September 2025

Alliance at a Crossroads

The Net-Zero Banking Alliance (NZBA), a UN-backed coalition of global banks formed to align finance with climate goals, has paused its activities and launched a member vote on its future structure.

The Steering Group confirmed on 27 August that members are considering whether to transition from a membership-based alliance into a framework initiative — a model it says would better support banks in meeting climate and economic resilience goals. The outcome will be announced at the end of September.

“The Steering Group believes this is the most appropriate model to continue supporting banks across the globe to remain resilient and accelerate the real economy transition in line with the Paris Agreement,” Net-Zero Banking Alliance said in a statement.

From Rapid Growth to High-Profile Exits

Launched in 2021 with 43 members, the NZBA grew to more than 140 banks representing $74 trillion in assets by 2024. Members committed to align their lending and capital markets activities with net-zero pathways, including interim 2030 emissions targets for high-emitting sectors.

But political headwinds soon mounted. U.S. state officials, particularly Republican lawmakers, warned of potential legal risks tied to climate alliances, part of a broader campaign against ESG. Banks faced threats of exclusion from state business, putting pressure on participation.

Departures began in late 2024, when Goldman Sachs announced it was leaving the NZBA, followed quickly by its Wall Street peers and Canadian banks. The alliance loosened its requirements in April 2025, removing the obligation to align all lending and capital markets activities with a 1.5°C pathway.

Despite that adjustment, exits resumed this summer. HSBC withdrew in July, followed by UBS and Barclays in August, with Barclays noting that “with the departure of most of the global banks, the organisation no longer has the membership to support our transition.”

Part of a Larger Realignment

The Net-Zero Banking Alliance is one of several financial-sector alliances established under the Glasgow Financial Alliance for Net Zero (GFANZ). Others — including the Net-Zero Asset Managers initiative, the Net-Zero Asset Owner Alliance, and the Net-Zero Insurance Alliance — have also faced withdrawals, restructurings, or closures in recent months.

The Net-Zero Insurance Alliance was disbanded in 2024, while NZAM suspended activities earlier this year. GFANZ itself has begun restructuring to focus more directly on enabling large-scale capital flows into the low-carbon transition.

Looking Ahead

Net-Zero Banking Alliance has urged banks to continue advancing their net-zero targets while members vote on the new framework.

“NZBA encourages the banking sector to remain steadfast in implementing their net-zero commitments,” it said.

The outcome of the vote at the end of September will determine whether the alliance continues in a new form or cedes its role to other emerging coalitions shaping climate finance.

Related Content: Major U.S. Banks Leave Net-Zero Banking Alliance: Will the UN Step In Again Like It Did With the NZIA?