Less than two weeks before the inauguration of Donald Trump as President of the United States, the six biggest banks in the country have quit the UN-sponsored net zero banking alliance (NZBA), the global banking industry’s group seeking to achieve net-zero carbon emissions by 2050 or earlier. According to The Guardian, the move is an attempt to head off political backlash against climate action that’s expected to increase under the Trump administration.

JP Morgan is the latest to withdraw from the alliance, following Citigroup, Bank of America, Morgan Stanley, Wells Fargo and Goldman Sachs. All six have left since the start of December 2024.

Trump’s vows to deregulate the energy sector, dismantle environmental rules and “drill, baby, drill,” were a big part of his campaign platform and are expected to form a key part of his new administration’s strategy.

Net zero refers to the balance between the amount of greenhouse gas (GHG) that's produced and the amount that's removed from the atmosphere. It can be achieved through a combination of emission reduction and emission removal.

Convened by the UN Environment Programme finance initiative but led by banks, the NZBA directs its members to design, set, and achieve credible science-based net-zero targets for 2030 or sooner that deliver value for their investors and clients. Citigroup was one of its founding members. 

The Guardian reports that, after the U.S. banks’ exodus, the NZBA still counted 141 banks among its members, including all the largest European banks.

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In related news, McDonald’s announced on January 6 that it is ending aspects of its diversity, equity, and inclusion (DEI) work. The Independent said this was only the latest in a series of announcements from high-profile corporations, including John Deer and Walmart, to move away from such programs, prompted by concerns over new legal precedent and a cultural backlash against “woke” agendas.