Net-Zero Banking Alliance Votes to Shut Down After Major Bank Withdrawals
The Net-Zero Banking Alliance, a UN-backed initiative launched in 2021 to combat climate change, has voted to shut down. The alliance, which once boasted over 140 banks globally, including Canada's Big Six, will cease operations immediately.
The alliance, established by former Canadian Prime Minister and UN Special Envoy for Climate Action and Finance Mark Carney, aimed to bring the financial sector on board with climate efforts as part of the broader Glasgow Financial Alliance for Net-Zero. At its peak, it had over 140 banks committed to decarbonization targets.
However, the alliance faced a series of withdrawals throughout the year. In January 2025, Canada's Big Six banks, including RBC, TD, Scotiabank, BMO, CIBC, and National Bank, left the group to continue climate efforts independently. This was followed by a wave of US bank departures, starting with Wells Fargo and Goldman Sachs in December 2024, and culminating with Morgan Stanley's exit in late September or early October 2025. Other notable departures included Bank of America, Citigroup, and HSBC in July 2025.
Political pressure from U.S. Republicans, following the election of Donald Trump in 2024, contributed to the exodus of major US banks. Despite the setback, the alliance's created climate guidance frameworks, including guidance on setting climate targets, will remain available.
The Net-Zero Banking Alliance, which once united over 140 banks globally in the fight against climate change, has voted to shut down. While the alliance's operations end immediately, its frameworks and guidance will continue to be accessible. The departure of major banks, including Canada's Big Six and several US institutions, signals a shift in the financial sector's approach to climate action.
