Net Zero Banking Alliance (NZBA) members are under pressure to restrict their financing of fossil fuel projects, including coal production.
Sixteen organisations – including ShareAction, BankTrack and Reclaim Finance – have written to the UN Environment Programme Finance Initiative (UNEP FI) and NZBA Steering Committee, noting that they are “concerned” by reports of a UNEP FI spokesperson claiming it is “unlikely” that individual alliances will need to update their core commitments to meet Race to Zero’s new rules.
The NGOs have argued that this undermines the credibility of UNEP FI’s role as convenor of three of the Glasgow Financial Alliance for Net Zero (GFANZ) member alliances.
The seven net zero alliances under GFANZ have committed to meeting the updated minimum criteria outlined by Race to Zero by June 2023.
The group has asked the NZBA to “urgently respond” by outlining their timelines and processes for updating guidelines to maintain the alliance’s accreditation, as well as the accountability mechanism that will ensure its members are aware of and will comply with their obligations.
Kelly Shields, ShareAction’s Senior Campaign Officer, said: “It is vital that the alliance updates its guidelines in line with the strengthened Race to Zero criteria to ensure member banks act with the ambition needed to address the climate crisis.”
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