Barclays Exits Net-Zero Alliance Amid Global Retreat

Barclays has officially withdrawn from the Net-Zero Banking Alliance (NZBA), making it the second significant UK-based bank to leave the coalition supported by the United Nations, in a move that has resonated across the financial and sustainability industries. Following HSBC's recent departure, this decision shows a rising tendency among international financial organizations to disengage from climate-focused banking collaborations under increasingly tight political and legislative scrutiny.

Barclays' exit follows several prominent departures from the NZBA in recent months. All significant Wall Street banks and Canada's biggest banks stated earlier this year that they would no longer be members. Mounting pressure from U. S. Republican legislators, who have criticized Environmental, Social, and Governance projects and advised banks, asset managers, and insurance firms of possible legal consequences for engaging in climate coalitions, mostly impacted their departures. These lawmakers have even suggested excluding businesses that support ESG goals from doing business with certain U. S. states, therefore increasing the political challenges confronting finance aligned with climate.

In its official statement, Barclays said its choice was based on the reduced clout and credibility of the NZBA. The bank said, "With most of the global banks gone, the organisation no longer has the membership to support our transition. " As Barclays left the alliance, it repeated its ongoing dedication to reaching net-zero emissions by 2050. By 2030, the bank also kept its goal of mobilizing $1 trillion in sustainable and transition finance and supported its previously announced financed emissions goals.

Barclays stressed that even after leaving the NZBA, its internal environmental targets stay intact. In 2024, the bank stated that it earned about £500 million (USD $660 million) from sustainable and transition finance. With notable speed in activities during the first half of 2025, it has also secured a cumulative $220. 2 billion toward its $1 trillion objective. The statement continued, "While assisting to guarantee energy security for our clients and consumers, we finance the transition and scale climate tech and keep working with our clients on their transition. "

Launched in 2021, the NZBA is a worldwide project under the Glasgow Financial Alliance for Net Zero (GFANZ) meant to align the financial sector with paths to keep global warming to 1. 5°C. Recent times, though, have seen internal and outside pressures. The alliance disclosed important modifications to its structure in April 2025, including the dropping of a contentious need that banks match all lending and capital markets operations to the 1. 5°C global warming restriction. Although the initiative was meant to provide member banks more flexibility, it hasn't stopped the departure trend.

Following Barclays' statement, a spokesperson for the NZBA said the alliance would continue to back companies dedicated to climate action. The spokesperson stated, "NZBA is still focused on realizing the future vision so obviously supported by member banks a few months ago," and is supporting its members to lead on climate by tackling the obstacles preventing their customers from investing in the net-zero transition. "

Not everyone was comforted though. Sustainability champions and responsible investing organizations have said deep disappointment. Barclays' choice has been criticized by Jeanne Martin, Co-Director of Corporate Engagement at ShareAction, who said it was "incredibly disappointing and a step in the wrong direction. " She stressed that financial institutions have to stay firm in their climate pledges as climate risks—including heatwaves, floods, and other extreme weather events—become more frequent and serious.

After Barclays left, investors will be closely examining it, Martin cautioned. She remarked, "We cannot afford half measures. " Responsible investors will be watching intently and increasing pressure on the bank to safeguard long-term economic wealth and the livelihoods of people everywhere. "

The bank's departure highlights a more general problem facing the worldwide financial system: how to reconcile economic reality with political, legal, and climate goals. Some banks are reviewing their memberships, citing internal strategic re-evaluations and external pressures, whereas other banks remain within climate alliances and keep seeking climate-aligned funding.

Along with those of other financial titans all across North America, Europe, Asia, and Australia—including Macquarie and Sumitomo Mitsui—Barclays' exit raises urgent questions about the future viability and cohesiveness of the NZBA. The exits emphasize a changing environment where political ideology, commercial interests, and climate policy are becoming more intertwined with worldwide consequences for sustainable investment, climate financing, and the wider net-zero transition.