- Six of the largest U.S. banks have withdrawn from the UN-backed Net Zero Banking Alliance, a global banking initiative aimed at achieving net zero greenhouse gas emissions by 2050.
- NZBA members pledge to align their lending, investment and capital market activities with projects and programs that help reduce carbon emissions.
- Critics argue that the NZBA's radical climate goals will definitely harm economic growth, especially in states that rely on energy production, and limit access to affordable energy in favor of unreliable renewables.
- The banks’ withdrawal aligns with the incoming Trump administration’s priorities, which emphasize deregulation, energy independence and skepticism toward climate-focused policies. Trump’s campaign platform criticized "radical climate agendas," signaling a shift away from environmental mandates.
- Withdrawal from the NZBA aligns with broader sentiments among corporations scaling back or abandoning politically motivated programs in favor of focusing on benefiting consumers and shareholders.
The six largest banks in the United States have withdrawn from the United Nations-backed Net Zero Banking Alliance (NZBA) less than two weeks before President-elect Donald Trump's inauguration.
The six Big Banks are Bank of America, Citigroup, Goldman Sachs, JPMorgan, Morgan Stanley and Wells Fargo. All of them have voluntarily distanced themselves from the UN's global climate initiative, signaling a retreat from overreaching environmental policies. (Related: Trump moving to protect gas-powered appliances from being phased out with executive order.)
The NZBA is a coalition of banks committed to achieving net zero greenhouse gas emissions by 2050, and has been a focal point of the global climate agenda. Its members pledge to align their lending, investment and capital market activities with the goal of reducing carbon emissions. However, critics argue that such alliances often impose unrealistic mandates on businesses, stifling economic growth and energy independence.
U.S. finance industry preparing to align with Trump admin priorities
The timing of the banks' withdrawal is no coincidence. With Trump's inauguration looming, the financial institutions appear to be preemptively distancing themselves from policies that could clash with the incoming administration’s priorities.
Trump, who campaigned on a platform of deregulation, energy independence and a rejection of what he calls "radical climate agendas," has vowed to dismantle environmental rules and boost fossil fuel production.
Paddy McCully, a senior analyst at Reclaim Finance, described the banks' exit as a "lily-livered" attempt to avoid criticism from Trump and his allies. McCully noted that while these institutions were once eager to tout their climate commitments, the changing political climate has made such priorities less appealing.
This sentiment reflects a broader trend among corporations, many of which have recently scaled back or abandoned so-called “woke” policies related to diversity, equity, and inclusion and climate change in response to public and shareholder backlash.
The NZBA's mission, while ambitious, has faced growing scrutiny from conservative lawmakers and industry leaders who argue that such initiatives prioritize ideology over practicality. Critics contend that the alliance’s stringent requirements could harm the economy, particularly in energy-producing states, and limit access to affordable energy for everyday Americans.
Watch this video of President-elect Donald Trump lambasting the current White House's attempts to ban gas-powered water heaters.
This video is from the NewsClips channel on Brighteon.com.
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