Barclays Exits Net-Zero Banking Alliance Amid Wave of Defections

Barclays has become the second UK bank to withdraw from the UN-backed Net-Zero Banking Alliance (NZBA), citing the departure of major global lenders as rendering the group ineffective. This follows HSBC’s exit in July and a broader wave of defections by US banks earlier in the year, including JP Morgan, Citigroup, Bank of America, Morgan Stanley, and Goldman Sachs.
The NZBA, led by the UN Environment Programme’s finance initiative, required members to align their lending, investments, and activities with net-zero emissions targets by 2050. However, Barclays stated that the alliance’s shrinking membership, particularly the loss of major global banks, no longer supported its goals.
The exits have been linked to political shifts, including former President Donald Trump’s return to the White House, which has led to a focus on increasing oil and gas production. This has created pressure on financial institutions to reconsider their green commitments and prioritize profitability over climate initiatives.
Barclays’ decision underscores growing skepticism among banks about the viability of net-zero commitments without continued government subsidies. As more institutions pull out, the alliance’s ability to drive meaningful climate action remains increasingly uncertain.

Published: 8/3/2025