Net Zero Banking Alliance Terminated

By Robert Bradley Jr. -- October 6, 2025

“RIP—and not a moment too soon for the 2.1 billion humans that suffer in abject energy poverty and much too late for the 16.5 million loved ones they have lost due to indoor air pollution during the 5 1/2 years the Net Zero Banking Alliance was working to prevent financing for fossil fuel projects all over the world.” (- Ryan Zorn, below)

“NZBA votes to cease all operations, abandon membership model,” reported ESG Dive. Lamar Johnson summarized:

• Members of the United Nations-backed Net-Zero Banking Alliance voted Friday to immediately cease operations and shift to a guidance-based model, an NZBA spokesperson told ESG Dive.
• The spokesperson said that the vote also “provided a mandate to explore how best to carry this work forward.” Banks will be involved in that process over the next six to 12 months where further plans will be developed. 
• NZBA’s decision to shutter makes it the second UN-aligned net-zero industry group to cease operations in 2025. The Net Zero Asset Managers initiative suspended all activities earlier this year shortly after BlackRock, the world’s largest asset manager, exited the group in January.

The demise of the Net-Zero Banking Alliance followed a member-by-member exodus of its major U.S. members (Goldman Sachs, Wells Fargo, Bank of America, Citigroup, Morgan Stanley and JPMorgan Chase) and a vote to terminate its membership model. Canada’s six largest banks followed. Then came the exodus of the UK’s HSBC and Barclays. Swiss bank UBS exited most recently.

The fallback is a “Guidance” plan that “individual banks worldwide can continue to use and reference these resources to help develop and deliver on their own net-zero transition plans.”

While a victory for sustainability and social justice properly defined, the demise of the NZBA drew scorn from the UK “responsible investment” NGO, ShareAction (quoted in Johnson):

… it’s bitterly disappointing to see the biggest banks in the world vote to step away from accountability around their commitments. Despite some governments and corporates dialing down on their efforts to tackle the climate crisis, public support for climate action remains high and many investors are all too conscious of the massive risks to the economy of a worsening climate.

Really? So the banks in unison are taking action against the public will? Just the reverse is true.

The last word belongs to Ryan Zorn, a self-described “energy realist with specific expertise in corporate finance, valuation, capital sourcing, investor relations, planning/budgeting, risk management, and social/political advocacy,” who stated:

RIP—and not a moment too soon for the 2.1 billion humans that suffer in abject energy poverty and much too late for the 16.5 million loved ones they have lost due to indoor air pollution during the 5 1/2 years the Net Zero Banking Alliance was working to prevent financing for fossil fuel projects all over the world. This included projects to supply clean burning natural gas and propane to those who have nothing except wood, dung, and charcoal to heat and cook for their families.