Will The NZBA Exit Affect Barclay’s 2050 Net Zero Targets?
Finance giant Barclays has announced its withdrawal from the United Nations-backed Net Zero Banking Alliance (NZBA), following the footsteps of many other major financial institutions.
But does this mean Barclays is still on track to net zero?
Why has Barclays left the NZBA?
"After consideration, we have decided to withdraw from the Net Zero Banking Alliance,” says Barclays in an official statement.
“With the departure of most of the global banks, the organisation no longer has the membership to support our transition."
This move follows a cascade of high-profile exits from the NZBA in 2025.
All six of the largest US banks, five major Canadian banks and the Dutch sustainable finance pioneer Triodos Bank have also withdrawn this year from the NZBA:
- HSBC
- Triodos Bank
- JPMorgan Chase
- Citigroup
- Bank of America
- Morgan Stanley
- Wells Fargo
- Goldman Sachs.
The departures came after the alliance voted to loosen its climate requirements, shifting from strong mandates to language that only "recommends" banks set interim targets and support net zero pathways.
The dilution of NZBA’s founding ambition, particularly the weakening of the science-based targets and the reduced accountability for financed emissions, has raised alarm among climate advocates and former members.
Triodos Bank was also explicit in its criticism, stating: "Remaining a member under these less stringent guidelines, and seeing what we have achieved over the years being watered down, would not align with our own climate ambition and commitment to combatting climate change."
Barclays’ climate strategy moving forward
Despite stepping away from the NZBA, Barclays has reaffirmed its net zero by 2050 ambition and continues to pursue key sustainability targets.
The bank emphasised that its goals to mobilise US$1tn in Sustainable and Transition Financing and to reduce financed emissions remain unchanged.
Barclays is maintaining its focus on:
- Supporting clients in their decarbonisation journeys
- Financing climate technology and low-carbon innovation
- Scaling transition finance
- Enabling energy security for businesses and consumers.
In 2024, Barclays generated approximately £500,000 (roughly US$664,000) in revenue from sustainable and transition-related activities, demonstrating the growing economic value of climate-aligned finance.
What this means for sustainable finance
The NZBA, launched in 2021 as part of the Glasgow Financial Alliance for Net Zero (GFANZ), once united 144 banks however to date this has reduced to 126.
The overall predicted assets accumulated within the NZBA comes to US$42tn.
However, its weakening climate commitments and growing regulatory and political pressure, particularly in the US, has caused many members to depart.
Concerns around governance, legal exposure and the desire for operational autonomy have replaced the earlier cooperative spirit.
Barclays’ exit is symbolic of a broader retreat from collective net zero pledges in banking, raising important questions about the future of coordinated climate action in finance.
The bank’s ongoing climate efforts, revenue performance from sustainable finance and reaffirmed targets show that meaningful action can still happen outside of global alliances.
