Green banking alliance Carney helped create pauses activities, holds vote on its future
An international green banking alliance that Prime Minister Mark Carney played a key role in establishing is facing a potential transformation as it suspends its activities and holds a vote to determine its future.
The Net-Zero Banking Alliance (NZBA), a crucial component of the Glasgow Financial Alliance for Net Zero (GFANZ), was created during Carney’s tenure as the UN special envoy on climate action and finance. This global alliance of banks has been working towards facilitating green investments to aid in the transition to a net-zero society and combat the effects of climate change.
Originally starting with 43 member banks in 2021, the NZBA saw significant growth to as many as 120 members before facing setbacks such as the withdrawal of the United States under President Donald Trump’s administration. In January, Canada’s five largest banks also decided to exit the alliance.
Amid a wave of departures from both American and European banks, the NZBA has announced a vote among its remaining members to potentially shift from a membership-based alliance to a new framework initiative. The outcome of this vote will be disclosed at the end of September.
While the Canadian banks did not explicitly cite political reasons for their departure, statements indicated that they felt equipped to continue their green investment efforts independently. The alliance’s proposed transition to a framework structure aims to better support global banks in accelerating the transition towards a sustainable economy in alignment with the Paris Agreement.
Details regarding the specifics of this new framework are still being developed by the NZBA steering group and will be shared in due course. Despite uncertainties surrounding the future of the alliance, Mark Carney’s advocacy for sustainability and climate risk management remains a significant influence.
CBC News has reached out to the Prime Minister’s Office for comment on the NZBA’s decision, but a response has not been received yet. Stay tuned for further updates on the evolution of this important global initiative.
