Banking Union for Climate Changes of UN decay under legal pressure

The UN logo can be seen at the door in the United Nations seat (Photography Angela Weiss / AFP)

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After the Paris Agreement, the United Nations and World Leaders began pushing to reduce greenhouse gas emissions on “Net zero”. It resulted in a series of IGO and NGOs directed to change the behavior of the company. The companies quickly joined alliances with climate change, but the charges of violating antitrust began to threaten their future. After the mass exodus, the net zero banking alliance announced that working and restructuring is ceasing.

Adopted in 2015. year, the Paris contract has set clear goals for reducing carbon emissions, or greenhouse gases, by 45% to 2030. years and reach net zero until 2050. years. Nations, intergovernmental organizations and non-governmental organizations and NGOs began working on plans to implement a new regulatory framework for work on a net zero goal. While the emission with the effect of the glass garden is ranked by country, governments are not the main broadcaster. These are people living in these countries, through the consumption of goods and services, which emit GHG.

Strategic, any pressure on the net zero must be taken over the way Regulation and control of companies that provide goods and services used by the consumer to emit GHG. To make these changes, multiple access is used. It starts with controlling access to resource companies, including loans, insurance and bank accounts.

UN principles for responsible banking have led to Net-Zero Banking Alianca. The NZBA initially included the American bank, Citigroup and HSBC. NZBA members promise “transition operational and credited greenhouse gas emissions (GH) from their portfolios for loans and investments to match roads to the network by 2050. years or before.”

In fact, banks are pledged not to borrow money or open accounts with companies and industries that do not meet GHG emissions standards. The NZBA began to face antitrust issues from national regulators in 2023. years, in March 2024. they updated their guidelines to avoid litigation. However, they were changed were not enough to disquieve prosecution.

Similar organizations formed for other sectors faced similar issues. In 2021. The UN formed net-zero insurance insurance, where members agreed to use their portfolio to encourage companies and other clients to implement net zero actions. Similar to NBE, insurance companies have promised not to provide coverage to companies that do not meet GHG emissions standards. NzIa began to fall apart in 2023. Years Since the questions increased if the Alliance violated antitrust laws. It was dissolved in April 2024. years.

After the presidential election 2024. years, The six largest banks in the US left NZBA. Citigroup, Bank of America, Morgan Stanley, Wells Fargo, Goldman bags and JP Morgan announced their way out before President Trump swore for his second term. In the UK, HSBC went to July, with Barclaim following 1. August. This put the future of the NZBA to the question.

Announcing the exit, Barclays said, “After consideration, we decided to retire from the net global banks, organizations no longer membership to support our transition more in the organization.

27. August, NZBA announced restructuring. Instead of being an alliance of banks, it will become a “Framework Initiative”. The result will be a less influential organization focused on providing regulatory development guidelines, similar to the legal framework for the impact that produced Principles for responsible investments.

The NZBA said: “The management group believes that it is the most appropriate model that will continue to support the bank’s real economy in accordance with the Paris Agreement, as well as to continue engaging with the global banking industry for support and their clients.”

The change must go before the remaining members, and the vote is expected by the end of September. Although it is not mentioned in release, it will most likely result in changes to the name. Nzija is rumored as a forum for insurance transition on net zero. Expect something similar from NZBA.

The dissolution of the net zero banking association is another blow to the climate change activists who saw gains dismantled in the last year.