Major US Banks Exit Net-Zero Banking Alliance, Following Global Trend
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On Tuesday, JPMorgan revealed its decision to leave the Net-Zero Banking Alliance, reflecting the growing trend of U.S. banks exiting the major climate coalition amid political pressure.
JPMorgan’s decision to leave follows Bank of America, Citi, Morgan Stanley, Goldman Sachs, and Wells Fargo, which also quit the global climate-centered alliance.
According to the group’s member list, only three U.S. banks are still part of NZBA — Climate First Bank, Amalgamated Bank, and Areti Bank. Per the Fed, Amalgamated is the 158th biggest U.S. bank in terms of assets, and Climate First is the 984th. Areti Bank is not listed among the 2,151 banks with over $300 million in assets as of September.
Banks Leaving NZBA Faced Investigations By Republican-Led States
The wave of NZBA exits comes shortly before Donald Trump begins his presidency with a Republican-led Congress. The departures also follow years of investigations by House Republicans into climate-focused groups for possibly breaking antitrust and consumer protection rules.
All the banks that left NZBA were investigated by Republican-led states in the last few years. Citigroup, Morgan Stanley, Bank of America, JPMorgan Chase, Goldman Sachs, and Wells Fargo were all questioned by 14 Republican state attorneys general in 2022 and by 12 Republican heads of agriculture in 2024 about being part of NZBA.
A JPMorgan spokesperson noted that the team will keep working independently to help the Firm, its shareholders, and clients. The company will also stay focused on practical ways to support low-carbon technologies and improve energy security. The spokesperson added that the firm will also keep supporting the investment and banking needs of its clients working on energy transition and cutting carbon emissions in different industries.
Despite Leaving NZBA, JPMorgan Will Remain Engaged With GFANZ And Similar Groups
Even though it has left NZBA, JPMorgan is at least the third bank to say it will still work with GFANZ, the UN-backed umbrella group for NZBA and other climate-centered alliances in finance. Bank of America and Citi also said last week that they will stay part of GFANZ.
The JPMorgan representative said the bank will keep partnering with GFANZ, and others, to find solutions and improve market conditions that can help build a low-carbon and energy-safe future.
A month ago, the House Judiciary Committee, chaired by Republican Jim Jordan, alleged that environmental banking groups are acting like a climate cartel.
Established in 2021, the UN-led NZBA asks members to promise to change the greenhouse gas (GHG) emissions from their investment and lending portfolios to match net-zero goals by 2050 or earlier.
As noted on its website, NZBA now has 141 members from 44 nations, including top European banks like Banco Santander, Deutsche Bank, Barclays, and HSBC.
