Insider Brief
- The Net Zero Banking Alliance is looking to attract more banking members and has moved away from its 1.5C goal.
- The alliance lost four major Canadian banks in January.
- Several sectors, including housing and aviation, have not moved as quickly on climate goals as expected, the alliance chair said.
Net Zero Banking Alliance Eases Membership Requirements Amid Global Economic Shifts
The Net Zero Banking Alliance has voted to lower its membership rules to respond to changes in the global economy, Reuters reported its chair as saying.
The change comes in response to the January withdrawal of Canadian banks TD, Bank of Montreal, National Bank of Canada, and the Canadian Imperial Bank of Commerce, as well as the change in U.S. presidential administration.
The banking coalition has now voted to align their businesses with a “well-below 2 degrees target,” Reuters said.
Why Some Industries Are Slowing the Net Zero Transition
“The knowledge we had in 2021 on what was achievable…has been very different from where we are today,” Shargiil Bashir, Chief Sustainability Officer and Executive Vice President at First Abu Dhabi Bank and chair of the alliance, said.
“Some of the industries are not transitioning as we expected four years ago because either the technology is not moving as fast or the policymaking is not moving as fast.” Bashir named housing and aviation as two industries not moving as quickly as the alliance had expected.
Supporting Banks in Achieving Climate Targets Through New Resources
More than 100 of the banks already in the Net Zero Banking Alliance have already established 1.5 degree-aligned targets, but the alliance is hoping to attract new members by lowering the target.
The alliance is now focused on helping banks achieve the transition through webinars, papers, and other activities to build the banking sector’s capacity, Bashir told Reuters.
