It happened fast. One week, the world’s biggest lenders were standing shoulder-to-shoulder under the United Nations banner, pledging to save the planet. The next, the line started to crumble. By the time the dust settled in early 2025, JPMorgan Chase and basically every other major U.S. bank had officially walked out the door of the Net Zero Banking Alliance (NZBA).
Honestly, it wasn't just a quiet exit. It was a mass exodus.
When JPMorgan became the last "Big Six" American bank to cut ties on January 7, 2025, it signaled more than just a change in membership. It marked the end of an era for collective climate action in the financial world. If you’ve been following the headlines, you might think these banks just decided they don’t care about the environment anymore. But like most things in high finance, the reality is a lot messier, involving a mix of political cage-fighting, legal paranoia, and the cold, hard math of the energy transition.
The Great Wall Street Retreat
Let’s look at the timeline because the speed of this was wild. For years, being part of the NZBA was the ultimate corporate "green" badge of honor. Then, in a matter of weeks, the dominoes fell.
- Goldman Sachs kicked things off in December 2024.
- Wells Fargo, Bank of America, and Citigroup followed suit before the year even ended.
- Morgan Stanley rang in the New Year by quitting on January 2, 2025.
- JPMorgan Chase turned out the lights for the U.S. giants five days later.
By the time JPMorgan left, only a handful of small American institutions, like Amalgamated Bank and Climate First Bank, remained in the group. Think about that. In 2021, these banks were the founding faces of a movement to align $74 trillion in assets with the Paris Agreement. Now, they've basically said, "We’ll take it from here, thanks."
Why the sudden change of heart?
You’ve got to look at the climate in the U.S.—and I don’t mean the temperature. The political pressure had become a pressure cooker. Republican state attorneys general and treasurers have been breathing down these banks' necks for years. Texas, for instance, had been investigating several of these firms for an alleged "boycott" of the fossil fuel industry.
Interestingly, just hours after JPMorgan quit the alliance, Texas Attorney General Ken Paxton announced he was closing his reviews into the banks. Talk about timing.
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The Legal Trap and "Acting in Concert"
One thing most people get wrong is thinking this was just about politics. There was a very real legal fear haunting the C-suite: antitrust law. Basically, when a bunch of huge competitors get together and agree to restrict credit to a specific sector—like coal or oil—it starts to look a lot like a cartel to some lawyers. The banks were terrified that being part of a group with "binding" requirements could open them up to massive lawsuits for "acting in concert."
JPMorgan’s own statement was telling. They said they wanted to work "independently" to advance the interests of their firm and shareholders. They switched from the "we’re all in this together" vibe to "we’ll do our own thing, our own way."
The "Pragmatism" Pivot
You’ll hear the word "pragmatic" a lot if you read the exit statements. Banks like Citi and JPMorgan are pivoting their language. They aren't saying they've quit on climate goals entirely. Instead, they’re emphasizing energy security.
In plain English? They aren't ready to stop funding oil and gas while the world still runs on it. The NZBA’s shifting goalposts—like trying to include "capital markets activities" and stricter 2030 targets—made the banks feel like they were losing control of their own lending decisions.
What This Means for the Future of Net Zero
Is the Net Zero Banking Alliance dead? Kinda.
In a shocking move in late 2025, the NZBA actually voted to cease operations as a membership-based group. It’s now just a "framework initiative." Basically, the rules are still there if you want to use them, but the club is effectively closed.
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This is a massive blow to global standard-setting. Without a central body holding everyone to the same yardstick, we’re entering a "Wild West" of climate reporting. Every bank will now release its own sustainability report, using its own metrics, and pinky-promising that they’re still on track for 2050.
The European Divide
While the Americans ran for the exits, European banks like Barclays, HSBC, and UBS initially tried to hold the line. But even they eventually felt the chill. Barclays pulled out in August 2025, noting that with the Americans gone, the alliance no longer had the "critical mass" to be effective.
It’s a classic case of the "Free Rider" problem. If the biggest players in the world’s largest economy aren't playing by the rules, why should a bank in London or Paris handicap themselves?
Misconceptions You Should Ignore
Don't buy the narrative that these banks are suddenly "anti-green." They aren't. They’re still pouring billions into renewables. Why? Because there’s money to be made there.
What they are doing is distancing themselves from UN-backed mandates. They want to be able to fund a wind farm on Monday and a natural gas pipeline on Tuesday without a UN auditor calling them out for it. It’s about operational autonomy.
- The "Secret" Exit: None of this was really secret. The banks have been grumbling about the NZBA's stricter rules since late 2022.
- The Trump Factor: While the 2024 election definitely accelerated the exit, the cracks were there long before. The threat of "anti-woke" legislation at the state level did more damage than anything happening in D.C.
- The "Net Zero is Over" Myth: Banks still have internal 2050 goals. They just don't want to be legally bound to a group that might change the rules next year.
Practical Realities for Investors and Clients
If you’re an investor or just someone who cares about where your money goes, here’s how the landscape has actually changed.
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First, transparency is taking a hit. When everyone followed the NZBA playbook, you could (mostly) compare Bank A to Bank B. Now, you’ll need to dig through hundreds of pages of individual ESG reports to find the truth.
Second, sector-specific targets are getting squishy. Without the alliance’s pressure to meet 2030 milestones, some banks are already "re-evaluating" their interim goals. Wells Fargo, for example, backed away from some of its specific 2030 reduction targets shortly after leaving.
Actionable Insights for the New Era
If you want to keep these institutions accountable in this post-alliance world, you have to look past the marketing.
- Watch the "Financed Emissions" numbers: This is the only metric that matters. It’s the total carbon footprint of the companies the bank lends money to. If this isn't going down, the "commitments" are just paper.
- Look for Independent Verification: Since the UN isn't auditing them anymore, check if the bank uses third-party firms to verify their climate data.
- Follow the Energy Mix: A bank can claim to be "Net Zero" while still increasing its total dollar amount of fossil fuel financing. Check the ratio of green lending to fossil fuel lending.
The era of big, flashy climate coalitions is effectively over. We’re moving into a period of individual accountability. It’s less about which club a bank belongs to and more about what’s actually on their balance sheet. The "Big Six" might have quit the alliance, but the physical risks of climate change—and the economic risks of the energy transition—aren't going anywhere. They just decided they'd rather face them alone.
Next Steps to Track Progress
You can monitor the actual impact of these departures by checking the annual Banking on Climate Chaos report, which tracks the specific dollar amounts of fossil fuel financing from the major banks regardless of their alliance status. Additionally, keep an eye on the GFANZ (Glasgow Financial Alliance for Net Zero) updates, as many banks like JPMorgan still maintain a loose association with this umbrella group even after ditching the NZBA.