Banks Abandon Net-Zero Alliance Under Trump

Several major U.S. banks, including Morgan Stanley, Citigroup, Bank of America, Wells Fargo, and Goldman Sachs, recently withdrew from the Net Zero Banking Alliance (NZBA). This departure is largely attributed to a shifting political climate, particularly with the anticipated return of a Trump administration and increasing political pressure against "woke" investing. While the banks maintain their commitment to climate action, concerns about antitrust lawsuits and the rising cost of fossil fuel financing fueled these decisions. Environmental advocates are pushing for government regulations to hold banks accountable for their actions. The future of climate finance initiatives within the U.S. banking sector remains uncertain.