More than 40 of the world's biggest banks have joined a UN-convened alliance pledging to align their lending and investment portfolios with net-zero emissions by 2050.
The Net-Zero Banking Alliance brings together 43 banks - including Barclays, Citi and Shinhan - from 23 countries with US$28.5 trillion in assets.
The group is a founder member of Glasgow Financial Alliance for Net Zero (GFANZ), chaired by Mark Carney, UN Special Envoy on Climate Action and Finance.
Says Carney: "Most fundamentally, GFANZ will act as the strategic forum to ensure the financial system works together to broaden, deepen, and accelerate the transition to a net zero economy.”
The banking alliance says it will reinforce, accelerate and support the implementation of decarbonisation strategies, providing an internationally coherent framework and guidelines in which to operate, supported by peer-learning from pioneering banks.
In addition to the main 2050 target, members will set 2030 targets on priority sectors where the banks can have the most significant impact, ensuring they engage with their clients' decarbonisation efforts.
John Kerry, US special presidential envoy for climate, says: “As countries around the world move to decarbonize, the large sums these institutions are dedicating to climate finance also reflect a growing understanding of how critical a low-carbon global economy is to their business models.
"Ultimately, their commitment of capital and assets, as well as adherence to high standards and reporting, will accelerate the transition to this new economy, create a massive number of new jobs, and increase our collective ability to tackle the climate crisis."