RBC Withdraws from Climate Finance Alliance

Canadian banks quit Net Zero Banking Alliance over U.S. policy shift
RBC becomes the third major Canadian bank in two weeks to break away from the Net Zero Banking Alliance following last week's departure of Toronto-Dominion Bank and the Bank of Montreal. Others in this category include the big guns: Bank of Nova Scotia, Canadian Imperial Bank of Commerce, and National Bank of Canada.
This is the latest in a series of similar moves by the biggest U.S. banks, which collectively resolved to withdraw from the group at the end of 2024, after the public resignation of Goldman Sachs, Morgan Stanley, Wells Fargo, Bank of America, Citigroup, and JPMorgan Chase & Co.
Another reason such pressure is rising on climate finance in the United States is in response to former President Donald Trump's efforts to dismantle Biden-era climate policies.

The NZBA is part of the Glasgow Financial Alliance for Net Zero. The group established this in 2021 and set up a commitment to align financial institutions with net-zero goals by 2050. The group was expected to set up interim reduction targets relating to their lending and investment portfolios toward 2030 greenhouse gas emissions.
At any rate, they never would have been so alike with Trump getting back on campaign trail as is with flag restoring climate finance regulation. Republicans push the climate finance policy a notch higher to attach it unnecessary cost for business as a result. The mounting pressure led the banks to seek respite now starting exploring to revise their interest within the effort climate for globe. 
Banks still take hold of the climate goals leaving them

As they are stepping out of the alliance, the Canadian banks insisted that their action in addressing climate change does not change. In its statement, RBC said it already has all it needs inside to meet its implementation of climate strategy even without NZBA. Meanwhile, other banks exiting the alliance sent similar messages as they delivered carbon-cutting targets and sustainable finance commitments.
Industry observers believe that the banks are pulling out from groups that place them against some form of political and regulatory risks and pursue sustainability in-house. Although this is seen by the critics to weaken global cooperation in climate finance, proponents say it provides financial institutions with the space to meet environmental goals.

NZBA Still a Global Member

While the Canadian and U.S. banks have pulled out, NZBA still has membership from more than 40 countries, which adds up to over 135. The European banks are a solid partner in this network since the organization continues to push for net-zero commitments, though recent withdrawals do indicate the chasm between North America and the rest of the world on climate finance strategies.
Among the questions regarding the sustainability of joint efforts in climate finance is whether financial institutions can pull global climate alliances. The banks will find other ways to come with the changing political dynamics to reconcile the environmental goals with regulatory and market pressures.