“Bitterly Disappointing”: Hopes for Banker-Led Climate Action Dashed

Hopes for a new era of banker-led climate action have been dashed by the “bitterly disappointing” collapse of the Net Zero Banking Alliance (NZBA). The global coalition, which was led by banks for banks, has shut down, signaling a major setback for those who believed the industry could lead its own transition.
The phrase “bitterly disappointing” was used by Jeanne Martin of ShareAction to describe the shutdown, a sentiment shared by many who had invested hope in the NZBA model. The alliance was seen as a chance for senior bankers to step up and demonstrate leadership on one of the world’s most pressing issues.
However, when faced with a leadership test in the form of political pressure from the US, the industry’s leaders faltered. The decision by the six largest American banks to quit the alliance was seen not as an act of leadership, but as a retreat from responsibility.
This failure at the top had a demoralizing effect on the rest of the group. With the most powerful banks unwilling to lead, other members like HSBC and Barclays saw little point in continuing. The vision of a united, banker-led front on climate change dissolved.
The dashed hopes for the NZBA have led to a reassessment of where leadership on climate finance must come from. If the bankers themselves are unwilling or unable to lead, then leadership must come from elsewhere. For a growing number of observers, that “elsewhere” is unequivocally the offices of government regulators and policymakers.