JPMorgan Chase has become the latest major U.S. bank to leave the Net Zero Banking Alliance (NZBA), a coalition of financial institutions committed to aligning their lending and investment portfolios with net-zero carbon emissions by 2050. The bank’s decision follows similar moves by Bank of America, Citigroup, Morgan Stanley, Goldman Sachs, and Wells Fargo, all of which have exited the UN-backed group in recent weeks.
A spokesperson for JPMorgan confirmed the exit, first reported by Reuters, stating that the bank remains focused on supporting low-carbon technologies and advancing energy security.
“We will continue to work independently to advance the interests of our firm, our shareholders, and our clients,” the spokesperson said. “We will also continue to support the banking and investment needs of our clients who are engaged in energy transition and in decarbonizing different sectors of the economy.”
The recent departures leave only three U.S.-based banks—Amalgamated Bank, Climate First Bank, and Areti Bank—as members of the NZBA. These banks represent a small fraction of U.S. banking assets, with Amalgamated ranked as the 158th largest U.S. bank by assets, according to Federal Reserve data.
Political and Regulatory Pressure
The wave of NZBA exits comes amid growing scrutiny from Republican lawmakers. Over the past two years, Republican attorneys general and agriculture officials in several states have probed the memberships of major banks in the climate-focused group, raising concerns about potential violations of antitrust and consumer protection laws.
This shift in sentiment is expected to intensify with President-elect Donald Trump taking office later this month alongside a Republican-controlled Congress. The political landscape has increasingly focused on limiting perceived overreach by financial institutions into climate policy, which critics argue could conflict with the principles of free-market competition.
Continued Engagement with GFANZ
Despite withdrawing from the NZBA, JPMorgan stated that it will maintain its involvement with the Glasgow Financial Alliance for Net Zero (GFANZ), the broader UN-backed initiative encompassing the NZBA and other climate coalitions. Citi and Bank of America, which also recently left the NZBA, have reiterated similar commitments to GFANZ.
Mary Schapiro, head of GFANZ’s secretariat, recently announced a strategic restructuring of the alliance to focus on mobilizing climate finance through public-private partnerships. In a letter dated January 2, Schapiro stated that GFANZ had “achieved its initial goal of developing the building blocks” of a financial system capable of supporting the net-zero transition. The alliance will now concentrate on closing the financing gap for climate initiatives, with leadership from executives such as Citigroup CEO Jane Fraser and Bank of America CEO Brian Moynihan.