Major US Bank Abandons Climate Change Pledge
Citigroup has announced its departure from the Net-Zero Banking Alliance (NZBA), a global coalition of banks committed to reducing greenhouse gas emissions. This move marks the third major US lender to exit the group, following Wells Fargo and Goldman Sachs, which left earlier this month.
A Shift in Priorities
Historically, financial institutions have faced criticism for their ties to the fossil fuel industry. In recent years, they have made efforts to integrate net-zero standards into their operations. However, with growing pressure from Republican policymakers opposed to limiting fossil fuel financing, some banks are scaling back on their climate initiatives.
Citigroup’s Progress and Departure
Citi claims to have made significant progress towards its own net-zero goals, prompting its decision to leave the NZBA. The alliance aims to bring carbon emissions from lending and investment portfolios to zero on a net basis by 2050.
Legal Challenges and Political Backlash
The move comes amidst legal challenges and political backlash against financial institutions prioritizing climate action. Last month, BlackRock, Vanguard, and State Street were sued by Texas and 10 other Republican-led states, alleging antitrust law violations through climate activism that reduced coal production and boosted energy prices.
A Changing Landscape for Climate Action
As major banks reevaluate their climate commitments, the landscape for climate action is shifting. With growing pressure from policymakers and legal challenges, it remains to be seen how financial institutions will balance their environmental responsibilities with political and economic realities.
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