JPMorgan is the latest major US bank to exit the NZBA. (Photo: iStock)
Update: Trump promises to stop new wind farms and JPMorgan leaves NZBA
On Jan. 7, during a press conference at his Mar-a-Lago estate in Florida, U.S. President-elect Donald Trump emphasized that he would not approve the construction of any wind farms during his term.
At the same time, the U.S. financial sector seems to be feeling political pressure, with major banks increasingly choosing to exit the net-zero alliance. In less than a month, six of the largest banks in the U.S., including JPMorgan, have announced their withdrawal from the United Nations Net-Zero Banking Alliance (NZBA). The following is the report from Jan. 3:
The commitment of major US financial institutions to net-zero goals is facing increasing challenges. Following Goldman Sachs and Wells Fargo, Morgan Stanley, Citigroup and Bank of America also announced by the end of 2024 their decision to exit the United Nations' Net-Zero Banking Alliance (NZBA).
This shift reflects the growing influence of president-elect Donald Trump's climate change skepticism, which has begun to resonate within the financial sector.
Citigroup, Bank of America still pledge net-zero
Morgan Stanle, Citigroup and Bank of America issued separate statements announcing their withdrawal but emphasized their continued dedication to achieving net-zero targets.
Citigroup stated that it would remain focused on reaching net-zero goals while ensuring energy security and supporting customers' transition to a low-carbon economy. Similarly, Bank of America assured it would continue to assist clients in reducing carbon emissions.
Earlier, Goldman Sachs and Wells Fargo also withdrew from NZBA in December 2024, though their statements did not specify the reasons for leaving the alliance.
One possible reason for the banks’ withdrawal is the mounting political pressure they face. In November 2024, 11 Republican-led states, including Texas, filed a lawsuit against major US asset management firms like BlackRock, Vanguard, and State Street, accusing them of reducing coal production and driving up energy prices through climate action, which allegedly violates antitrust laws by hindering market competition.
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Major banks and corporations are increasingly cautious about antagonizing the incoming administration and are withdrawing from climate-focused initiatives. (Photo: iStock)
Political pressure from Republican lawmakers
The House Judiciary Committee, also led by Republicans, issued a report citing substantial evidence of collusion and anti-competitive behavior within the financial sector. They criticized financial firms for imposing aggressive ESG (Environmental, Social, and Governance) sustainability goals on US businesses.
Committee Chairman Jim Jordan (Republican, Ohio) singled out climate alliances like Climate Action 100+ and the Glasgow Financial Alliance for Net Zero (GFANZ), accusing them of undermining fair competition.
Although the exact impact of Trump's potential return to the presidency on these climate financial alliances remains unclear, the pressure from Republican lawmakers has only intensified since his election. As a result, major banks and corporations are increasingly cautious about antagonizing the incoming administration and are withdrawing from climate-focused initiatives.
Founded in 2021, NZBA is the largest global banking climate alliance, with over 100 banks from 44 countries, holding a total of $71 trillion in assets. Members of NZBA commit to adjusting their lending and investment portfolios to achieve net-zero emissions by 2050.
Source: Reuters(1)、(2)、Financial Times、Bloomberg(1)、(2)
