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Green Banks Express Frustration After Net-Zero Banking Alliance Declines to Impose Restrictions on Fossil-Fuel Financing
March 14, 2023The Net-Zero Banking Alliance (“NZBA”), the UN-led coalition of global banks “committed to aligning their lending investment portfolios with net-zero emissions by 2050,” is facing backlash from certain sustainability-focused banks after it declined to impose binding limitations on fossil-fuel financing. At least one bank has left the alliance in opposition and others have expressed similar frustration, contending that the NZBA’s decision is “disappointing and discouraging,” “frustrating,” and “incompatible with net zero.” The decision was made in response to large U.S. banks threatening to leave the alliance if such restrictions were imposed.
