Citigroup Leaves Global Climate-Banking Alliance

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Citigroup Exits Net-Zero Banking Alliance, Third Major US Lender to Do So in a Month

Citigroup has announced that it is leaving the Net-Zero Banking Alliance (NZBA), becoming the third-largest US lender to do so in the past month. The bank cited its commitment to achieving net zero emissions, despite its departure from the alliance.

Reason for Departure

In a statement, Citigroup said it is exiting NZBA, which is part of the Glasgow Financial Alliance for Net Zero (GFANZ), a United Nations-backed umbrella group of net-zero-focused financial sector coalitions. The bank plans to support GFANZ during its new phase and will continue to work with clients on their transitions to a low-carbon economy.

Background

Citigroup is a founding member of GFANZ and its CEO, Jane Fraser, is part of the alliance’s Principals’ group, which sets priorities for GFANZ. The bank is also a major player in the green bond market, ranking as the world’s fourth underwriter of green bonds since the start of the decade, according to Bloomberg data.

Context

The departure of Citigroup from NZBA follows similar moves by Goldman Sachs and Wells Fargo, which have also exited the alliance in recent weeks. The largest US financial institutions are facing increasing pressure from Republican lawmakers to distance themselves from industry groups that support reducing greenhouse gas emissions.

Future Plans

Citigroup’s statement emphasized its commitment to achieving net zero emissions and supporting the energy transition. The bank plans to continue working with clients on their transition to a low-carbon economy and ensuring energy security, given the range of transition pathways being pursued across its global network.

Conclusion

Citigroup’s departure from NZBA underscores the growing tension between financial institutions and climate change. While the bank remains committed to achieving net zero emissions, its exit from the alliance may be seen as a setback for efforts to address the climate crisis. As the financial sector continues to navigate the complexities of climate change, it remains to be seen how other major institutions will respond to the growing pressure to take action.

FAQs

Q: Why is Citigroup leaving NZBA?

A: Citigroup is exiting NZBA to focus on its own efforts to achieve net zero emissions and support the energy transition.

Q: What is the Net-Zero Banking Alliance?

A: The Net-Zero Banking Alliance is a group of financial institutions committed to achieving net zero emissions.

Q: What is the Glasgow Financial Alliance for Net Zero?

A: The Glasgow Financial Alliance for Net Zero is a United Nations-backed umbrella group of net-zero-focused financial sector coalitions.

Q: What is Citigroup’s position on climate change?

A: Citigroup is committed to achieving net zero emissions and supporting the energy transition, as stated in its recent statement.

Angela Lee
Angela Lee
Director of Research

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