Bank of America (BofA) and Citigroup, two of the largest U.S. lending institutions, have announced their exit from the Net-Zero Banking Alliance, the largest UN-sponsored global initiative to tackle climate change in the financial sector. The decision, made public on the last day of 2024, follows a similar step taken earlier by Goldman Sachs and Wells Fargo.
Launched in 2021 with U.N.-backed support, the agreement commits banks to limit investment and financing toward industries that contribute to climate change in line with the goal of zero net greenhouse gas emissions (the balance between emissions produced and avoided) by mid-century. 129 entities from 44 countries that manage total assets of $49 trillion are now part of the arrangement (updated on April 3rd 2025, ed.).
A sign of the times?
The decision by the two institutions could be linked to today’s particular political scenario, the Financial Times wrote. Indeed, U.S. banks and large corporations, the British newspaper notes, are facing increasing pressure from conservative lawmakers to abandon pledges that would force them to reduce financing to oil and gas industries or other fossil fuel energy producers.
Such pressure would increase after Trump’s re-election.In November, the FT continues, some Republican-led states filed a federal antitrust lawsuit against the three largest index fund managers in the United States – BlackRock, State Street and Vanguard – accusing them of using their investment power to reduce energy supplies in line with their climate goals.
