News: Net-Zero Banking Alliance (NZBA) announced that it will cease operation, bringing an end to the UN-supported banking coalition that worked to promote global net-zero goals through its financing activities.
About Net-Zero Banking Alliance
- It is bank-led and UN convened alliance of leading global banks committed to aligning their lending, investment, and capital markets activities with net-zero greenhouse gas emissions by 2050.
- It is a flagship climate initiative under the Principles for Responsible Banking to accelerate science-based climate target setting and develop common practice.
- Formed in: 2021
- It is a global alliance within the Glasgow Finance Alliance for Net Zero (GFANZ) and is open to all banks globally.
- No Indian Bank is part of the alliance.
- It works to provide a framework, guidance, and peer learning opportunities to support members to design, set, and achieve credible science-based net zero targets for 2030 or sooner.
- Governing body: It involves a Steering Group and a Chair.
- The Steering Group, composed of representatives from member banks.
- It represents the alliance’s 144 banks through 14 banks each selected by member banks.
- It is coordinated and supported by the UNEP FI Secretariat, with the United Nations also holding a seat on the Steering Group.
- All banks that have signed the commitment will:
- Transition the operational and attributable GHG emissions from their lending and investment portfolios to align with pathways to net-zero by 2050 or sooner.
- Within 18 months of joining, set 2030 targets (or sooner) and a 2050 target, with intermediate targets to be set every 5 years from 2030 onwards.
- Bank’s first 2030 targets will focus on priority sectors where the bank can have the most significant impact
- Within 36 months of joining, banks will set a further round of sector-level targets for all or a significant majority of specified carbon-intensive sectors.
- Annually publish emissions data and, within a year of target setting, disclose progress on a board-approved transition strategy and sectoral climate policies.
- Take a robust approach to the role of offsets in transition plans.
