The Net-Zero Banking Alliance, launched under the United Nations in 2021 with the support of Mark Carney, has suspended operations following a steep decline in participation.

The coalition was created to bring banks together on commitments to align lending and investment with net-zero greenhouse gas emissions by 2050. Membership once exceeded 120 institutions across more than 40 countries, but the group has struggled to hold together as financial institutions faced political and regulatory challenges.

Large American banks, including Goldman Sachs, JPMorgan Chase, Citigroup and Morgan Stanley, were among the first to leave in late 2024. Their exits were followed by European institutions such as Barclays, UBS and HSBC. Departures accelerated after the alliance expanded its focus in 2024 to include capital market activities, drawing heightened scrutiny from regulators and industry critics.

With participation dwindling, the group’s steering committee called a vote this summer on whether to dissolve its binding membership model and continue as a looser framework offering voluntary guidance. During this process, all formal activities have been put on hold. Results of the vote are expected by the end of September.

The suspension mirrors similar challenges facing other climate-finance networks. An alliance of asset managers folded earlier in the year after major firms withdrew under pressure from political leaders and legal challenges in the United States.

Despite the pause, many banks involved in the initiative have indicated they continue to pursue climate-related strategies independently, though outside the structure of the UN-backed network.