On August 1, 2025, UK-based Barclays Bank announced its withdrawal from the UN-backed Net Zero Banking Alliance (NZBA), becoming the second UK bank to exit the alliance after HSBC.

In a statement, Barclays Bank stated: "After consideration, we have decided to withdraw from the Net Zero Banking Alliance. With the departure of most of the global banks, the organisation no longer has the membership to support our transition."

In response to the loss of members, the NZBA urgently revised its framework in April 2025 to retain members, making a key concession: removing the mandatory requirement that banks' investment and financing activities align with the 1.5°C temperature control target.

The withdrawal of multiple banks reflects a decline in trust in collective climate commitment mechanisms, with companies increasingly opting to pursue independent paths aligned with their own strategies.

Although Barclays did not explicitly mention political pressure in its statement, it emphasized “business opportunities” and “energy security,” suggesting a strategic adjustment.

Does Barclays' choice represent a “pragmatic approach”?

Despite withdrawing from the NZBA, Barclays Bank emphasized that it remains committed to achieving its goal of becoming a net-zero bank by 2050, stating: "Our targets to mobilise $1trillion of Sustainable and Transition Financing and for financed emissions remain unchanged. We continue to work with our clients on their transition, finance the transition and scale climate tech, while helping to ensure energy security for our customers and clients."

Jeanne Martin, Co-Director of Corporate Engagement at responsible investment NGO ShareAction, said:”Barclays' decision to leave the NZBA is incredibly disappointing and a step in the wrong direction at a time when the dangers of climate change are rapidly mounting.”

“The announcement comes just three days after Barclays published a transition update reiterating its commitment to be a net zero bank by 2050, sending mixed signals to governments and companies around the world.”

Barclays' net-zero rhetoric runs parallel to its expansion of fossil fuel financing. The report “Banking on Climate Chaos 2025” notes that despite record-breaking global warming and frequent extreme weather events in 2024, major global banks have not only failed to fulfill their “net-zero” commitments but have instead increased their financing support for the fossil fuel industry, totaling 869 billion dollars. Among them, Barclays is Europe's largest fossil fuel financing institution, with financing totaling $35.4 billion in 2024, a year-on-year increase of 55%; financing for fossil fuel expansion reached $12.9 billion in 2024, a year-on-year increase of 47%.

The successive withdrawals of Barclays and HSBC have further weakened the NZBA's appeal and influence within the global banking sector.

The Net-Zero Banking Alliance (NZBA) is a component of the Glasgow Financial Alliance for Net Zero (GFANZ), established in 2021 as part of the UN-supported “Climate Action Financial Alliance,” aiming to drive global financial institutions to reduce carbon emissions from their members' loans and investment portfolios to zero by 2050.

The number of NZBA members has decreased from 144 to 126, and the concentrated withdrawal of leading banks from the US, Canada, and the UK may push this alliance, once regarded as the core of climate finance, into a survival crisis.

Barclays' withdrawal from the NZBA is both a strategic choice based on its assessment of the current alliance's value and a reflection of the waning “collective action belief” within the global climate finance system. While Barclays continues to uphold its net-zero targets and promote transition financing, whether it can fulfill its long-term climate commitments without collective accountability and alliance momentum remains to be seen.

Author：Qinger