US Banks Quit Net Zero Target Group Amid Political Backlash
Six major US banks have withdrawn from the UN-sponsored Net Zero Banking Alliance (NZBA), citing political pressure and a shift in the political landscape. This exodus comes as President-elect Donald Trump prepares to take office, with his administration expected to prioritize deregulation and fossil fuel development.
Analysts believe the banks' decision is an attempt to avoid criticism from Trump and his allies, who have been vocal in their opposition to climate action. Trump has pledged to dismantle environmental regulations and promote the expansion of the oil and gas industry.
The NZBA commits its members to aligning their lending and investment activities with net-zero greenhouse gas emissions by 2050. However, the banks argue that this goal is no longer feasible in the current political climate.
Critics of the banks' decision argue that it undermines their commitment to addressing climate change. They point out that the banks were eager to boast of their climate commitments just a few years ago, when climate change was a higher political priority.
Despite the loss of the US banks, the NZBA remains a significant force in the global financial sector. The remaining members, including all the major European banks, control approximately 40% of global banking assets. These banks have the potential to drive the transition to a net-zero economy, even without the participation of the US institutions.
8 Comments
Rotfront
Avoiding criticism from Trump should not come at the cost of environmental responsibility. Very disappointing move!
Matzomaster
Banks must navigate the current political terrain wisely. Support for their decision!
Karamba
Finally, some common sense from these banks! Deregulation is the way to go for economic growth.
Matzomaster
These banks understand that there are bigger priorities at play! Let's focus on jobs and the economy.
Karamba
Why risk political backlash? It makes sense for banks to focus on what they can realistically achieve.
Michelangelo
It’s about time these banks focused on what is feasible. Climate goals can’t come at the expense of our economy.
Martin L King
Climate change is important, but we can't ignore economic realities. Good move by the banks.
Rolihlahla
Political pressure is real, and businesses need to adapt. I'm glad they are prioritizing their interests.