The Net-Zero Banking Alliance (NZBA) is a UN-convened group of banks that have committed to aligning their lending, investment, and capital-markets activities with pathways to net-zero greenhouse gas emissions by 2050. It was launched in April 2021 under the auspices of the UN Environment Programme Finance Initiative (UNEP FI) and forms one of the sectoral sub-alliances of the broader Glasgow Financial Alliance for Net Zero (GFANZ), chaired by Mark Carney and Michael Bloomberg.
Member banks agree to:
- Set intermediate targets for 2030 (or sooner) covering the most carbon-intensive sectors in their portfolios, including oil and gas, power generation, coal, steel, cement, aluminium, transport, agriculture, and real estate.
- Use science-based decarbonisation scenarios to inform target-setting.
- Publish annual progress reports on absolute emissions and emissions intensity of financed activities.
- Set a long-term net-zero target for 2050 across scope 1, 2, and the relevant scope 3 financed emissions.
The Alliance grew rapidly after its launch, reaching more than 140 member banks across over 40 jurisdictions, collectively representing a substantial share of global banking assets. However, it has faced significant turbulence. US Republican attorneys general and state treasurers raised antitrust and fiduciary-duty objections from 2022 onward, contributing to the departure of several large North American banks. In late 2024 and 2025, major US institutions including Goldman Sachs, Wells Fargo, Citigroup, Bank of America, Morgan Stanley, and JPMorgan Chase announced withdrawals, followed by some Canadian and Japanese banks. In April 2025 NZBA members voted to loosen the framework, dropping the strict 1.5°C alignment requirement in favour of a broader Paris Agreement reference.
For MUN and policy researchers, NZBA is a useful case study in voluntary private-sector climate governance, the limits of soft-law commitments, and the interaction between ESG initiatives and domestic political backlash, particularly in the United States.
Example
In April 2021, 43 founding banks including HSBC, Barclays, BNP Paribas, and Citi launched the Net-Zero Banking Alliance ahead of the COP26 summit in Glasgow.
Frequently asked questions
No. It is a voluntary commitment framework. Banks face reputational rather than legal consequences for missing targets, though disclosures may interact with domestic securities and prudential rules.
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