Major U.S. Banks Exit Net-Zero Banking Alliance

All six major U.S. banks have withdrawn from the Net-Zero Banking Alliance (NZBA), a UN-sponsored initiative that aims to align banks' operations with net-zero emissions targets. Attorney General Ken Paxton lauded this decision, asserting that the NZBA's agenda undermines the oil and gas sectors and could violate Texas law prohibiting governmental contracts with companies that boycott these industries. The withdrawals come amid a political shift, with analysts suggesting the banks are seeking to avoid potential backlash from the incoming Trump administration, which has historically opposed climate action. While banks like JPMorgan Chase and Citigroup have stated their commitment to climate goals, they emphasize pursuing these independently rather than under the NZBA framework. The NZBA was established to encourage investments in reducing greenhouse gas emissions, but it now faces a considerably diminished U.S. membership, leaving only four American banks still involved. The departure raises questions about the future of climate-focused banking initiatives in the U.S. as political dynamics evolve.