Following a wave of defections from major banks, the Net Zero Banking Alliance says it is shutting down immediately.
The closure follows a stunning loss of confidence in the initiative as major banks from across the US and Europe stepped down in the light of new political positioning on climate change, led by US president Donald Trump.
The alliance, established in 2021 ahead of climate talks in Glasgow, originally required members to commit to reaching net-zero emissions by 2050, set interim emission-reduction targets for carbon-intensive sectors by 2030, and submit annual progress reports.
At its peak it had around 150 members, including most of the world's largest banks. However, that number has dwindled in the last few months, beginning with a mass exodus by US banks and a steady trickle of European institutions.
Last month, with major banks backing away from the commitment, the NZBA paused activities while it awaited a vote on a pivot from a membership-based organisation to a 'framework initiative'.
The vote has now concluded, with remaining members backing the switch. “As a result of this decision, NZBA will cease operations immediately,” a spokesperson says.