Barclays has pulled out of the UN-backed Net-Zero Banking Alliance (NZBA), becoming the latest major lender to abandon the coalition designed to align banking with global climate goals. The bank cited the withdrawal of several key members as a reason for its decision, arguing that the alliance no longer supports its transition strategy.
Launched in 2021 under the UN Environment Programme Finance Initiative, the NZBA requires member banks to set science-based emissions targets, disclose progress, and align lending and investment portfolios with efforts to limit global warming to 1.5 degrees Celsius. At its peak, the alliance included over 140 banks from more than 40 countries, representing about 40 percent of global banking assets.
Barclays’ departure follows similar exits by HSBC and the six largest U.S. banks, including JPMorgan Chase, Citi, and Bank of America. The exits come after the NZBA voted in April to relax some of its core requirements, including removing the obligation for members to align their portfolios strictly with the 1.5°C pathway.
Despite its withdrawal, Barclays says it remains committed to reaching net-zero emissions by 2050. The bank recently reported £500 million in revenue from sustainable and transition finance and has pledged to mobilize $1 trillion in climate-aligned financing by 2030.
The move has drawn criticism from climate campaigners. ShareAction, a UK-based responsible investment group, described Barclays’ exit as disappointing and warned that it weakens collective momentum toward decarbonizing the financial sector.
Analysts say the string of departures from the NZBA threatens to undermine the credibility of voluntary climate finance initiatives. Some are calling for stronger regulation to hold banks accountable for their climate pledges.
Barclays insists its climate goals remain intact, but its exit highlights growing tensions in the financial sector over how to balance commercial pressures with long-term climate responsibility. The NZBA, once a flagship coalition in climate finance, now faces uncertainty over its influence and future direction.
