Global banks will vote to retreat from climate commitments, jeopardizing global climate goals

In a concerning development, the Net-Zero Banking Alliance (NZBA), the world’s largest banking climate alliance will hold a vote on a proposal that would weaken its commitment to align $54 trillion in assets with the Paris Agreement’s critical target of limiting global warming to 1.5°C.

An affirmative vote will mean the Net-Zero Banking Alliance, established in 2021 as a key part of the Global Financial Alliance for Net Zero, will adopt a less stringent goal of keeping heating “well below 2°C”, a significant retreat from the urgent action required to address the climate crisis.

Andreas Sieber, Associate Director of Global Policy and Campaigns at 350.org says

“Rather than appeasing those resisting climate action, the Net-Zero Banking Alliance must take decisive action to uphold the 1.5°C target and end fossil fuel expansion. The alliance faces instability as some members withdraw as a result of being afraid and too short-sighted to commit to climate action required, above all cutting fossil fuel financing. However, the need for binding regulations and accountability measures has never been more urgent. Clearly, banks are concerned about the potential legal consequences for failing to meet net-zero commitments, underscoring the urgent need for more robust public regulatory frameworks.

The global climate justice movement calls on banks to uphold their commitments to the 1.5°C target and immediately halt funding for fossil fuel expansion. Anything less is a failure to protect vulnerable communities and a threat to the planet’s future. The time for vague promises and inadequate action is over—banks must act decisively to address the climate emergency.”

The move comes as global temperatures surpassed the 1.5°C threshold for the first time last year, a stark reminder of the need for stronger, not weaker, climate action.
Last year’s Banking on Climate Chaos report revealed that many alliance members have continued to pour nearly $700 billion annually into fossil fuel projects, despite joining the NZBA and committing to achieve net-zero emissions by 2050. This contradiction underscores a disturbing pattern: while banks publicly endorse climate goals, their actions continue to fuel the climate crisis.

Chuck Baclagon, Asia Regional Campaigner at 350.org says

“The Net Zero Banking Alliance’s proposal to weaken its commitments is more than just a policy tweak—it’s a retreat at a time when we need an advance. Shifting from a 1.5°C target to a vague -2°C ambition ignores what the science is telling us: every fraction of a degree matters, and every delay costs lives. But there’s still time to do this right. The NZBA and its member banks must stand firm, not shrink from their commitments. If financial institutions want to claim leadership on climate, they need to act like it—by accelerating the shift to clean energy, funding real decarbonization, and ensuring a just transition for those who need it most. The stakes couldn’t be clearer.”