The six largest US banks have withdrawn from an industry-led group that works to align financing with a goal of reaching net-zero greenhouse gas emissions by 2050.
With president-elect Donald Trump poised to return to the White House, JPMorgan Chase this week joined Bank of America, Citibank, Wells Fargo, Goldman Sachs and Morgan Stanley in pulling out of the Net Zero Banking Alliance (NZBA).
All of the departures have occurred since climate skeptic Trump won re-election in November.
JPMorgan did not give a reason for leaving the group it had joined in 2021 but said it was focused on "pragmatic solutions to help further low-carbon technologies while advancing energy security".
The NZBA declined to comment on the departures.
The bank-led NZBA launched in 2021, with a goal to align with industry's lending and investments with the goals of the Paris climate accord. Trump has promised to again pull the US out of the Paris agreement.
The 144 banks that were members of the group as of last October were committed to align their portfolios with pathways to reach net-zero by 2050 or sooner. But critics said the industry group, which was convened by the UN, was effectively coordinating a boycott of investment with the oil and gas industry.
Texas attorney general Ken Paxton in 2023 began reviewing JPMorgan and other US banks to see if their membership in the NZBA ran afoul of a state law that barred state entities from entering into contracts with banks that boycott the oil and gas sector. Paxton said the departure of banks from the group was a "major step in the right direction." Paxton's office said it had closed reviews of Wells Fargo, Bank of America, JP Morgan and Morgan Stanley.
Trump has called climate change a hoax and recently said he wanted to impose a "policy where no windmills are being built". In response to the deadly wildfires across Los Angeles, Trump today blamed the crisis on California leaders and falsely claimed the US Federal Energy Management Agency has "no money — all wasted on the Green New Scam".
By Chris Knight