A Mass Exodus Of Big Banks From The Net-Zero Bank Climate Alliance -

A Mass Exodus Of Big Banks From The Net-Zero Bank Climate Alliance

Jan 03, 2025Jeremy ParkinsonFinance, No picture0

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Net-Zero Banking Mass Exodus
The Net-Zero Bank Alliance Has Collapsed.

The climate policy retreat is accelerating as Citigroup, Bank of America and Morgan Stanley this week joined an exodus from the Net-Zero Banking Alliance.

The NZBA alliance is part of the United Nations “Glasgow Financial Alliance for Net Zero” effort to conscript private capital to drive the left’s climate goals. It was spearheaded by former Bank of England Governor Mark Carney in 2021. That was the year of peak climate arm-twisting.

Automakers are slowing their electric vehicle production plans. Utilities are extending the lifespan of coal plants to keep the lights on. Off-shore wind projects are being canceled because they aren’t economic. Even California last month indefinitely delayed its plan to shut down a giant natural gas storage facility.

State Attorneys General have threatened banks and asset managers with antitrust lawsuits for participating in such outfits as NZBA. The bank members are de facto committing to divest from fossil fuels by 2050, which may violate their fiduciary duty to customers and investors. Many are deciding the potential legal headaches aren’t worth it.

Vanguard in late 2022 pulled out of the Net Zero Asset Managers pledge. JPMorgan Asset Management, BlackRock and State Street Global Advisors last February retreated from a Climate Action 100+ compact. Now the big banks are joining Goldman Sachs and Wells Fargo, which quit the alliance last month. Net zero is becoming a much smaller club.

Big Names Pulling Out
The big names are pulling out. The legal headaches aren’t worth it.The point is moot. Net Zero by 2050 isn’t happening anyway.The Net Zero Objectives are amusing gibberish.

Net Zero Objectives

Financial Plan Objective: “Develop globally applicable, pan-sector recommendations and guidance for transition planning by financial institutions and define the key components of a credible net-zero transition plan.”

Transition Finance Objective: “Develop technical guidance that further defines the GFANZ four key transition financing strategies as a supplement to the transition plan framework, and outlines considerations for potential decarbonization contribution methodologies.”

Index Investing Objective: “Develop draft guidance to help index participants develop and adopt transition-informed indices, creating a pathway for index participants to engage with companies and help support companies’ real-economy decarbonization.”

Sectoral Pathways Objective: “Develop guidance to support financial institutions’ use of sectoral pathways in creating net-zero transition plans, aligning portfolios, and engaging with real-economy firms.”

By any chance did Kamala Harris write those objectives?My equally understandable objective is to “Achieve global peace via strategically placed incentives that highlight the importance of faith, education, and diversity, while encompassing AI and the oceans to increase energy efficient food supply to feed everyone.”How can anyone be against that?All I ask is $100 million from the UN and I will be on my way to certain success.The mystery isn’t why banks are dropping out, it’s how the hell they bought into this nonsense in the first place.

Very Unlikely Outcome
In case you missed it please see Sorry Green Energy Fans, Net Zero Is a Very Unlikely Outcome

Let’s discuss the Kyoto Protocol climate objectives and dozens of reasons why a net zero by the 2050 target has virtually no chance.

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