Net-Zero Banking Alliance (NZBA)

6.Net-Zero Banking Alliance (NZBA): COP29 held in Azerbaijan, failed to secure a fair deal on climate finance for developing nations, within three months, six major American banks exited the Net Zero Banking Alliance (NZBA).

  • About NZBA: Bank-led & UN-convened initiative aligning global banks’ lending, investment, and capital markets with Net-Zero GHG emissions by 2050.

o Climate accelerator for UNEP Financial Initiative’s Principles for Responsible Banking (PRB).

o India Position: There is no Indian bank is a member of this alliance.

  • Governance: Steering Group & Chair govern the alliance, representing diverse geographies and business models.

o Selected by member banks, supported by the UNEP FI Secretariat.

o United Nations holds a seat on the Steering Group.

o Operates under NZBA governance documents (adopted in Oct 2021, updated in Aug 2023 & Mar 2024).

  • Commitments for Member Banks: Align operational & attributable GHG emissions from lending & investment with Net-Zero pathways by 2050 or sooner.

o Set targets within 18 months of joining for 2030 or sooner, with 2050 target and intermediary targets every 5 years.

o First 2030 targets focus on GHG-intensive sectors, with further targets within 36 months.

o Annually publish absolute emissions & emissions intensity in line with best practices within a year of setting targets.