Under the aegis of the UN, 43 international banks have pledged to achieve carbon neutrality "by 2050 or sooner", as declared on Wednesday April 21 by the UN Environment Finance Initiative.
Intermediate targets set for 2030
Often accused of financing projects that run counter to environmental protection and the energy transition, the banks - or at least 43 of them - have decided to prove their commitment to carbon neutrality.
Part of the Glasgow Financial Alliance for Net Zero, chaired by UN climate envoy Mark Carney, who is also one of the organizers of COP 26 in Scotland later this year, the Net-Zero Banking Alliance comprises 43 international banks.
It includes a number of French banks, such as La Banque Postale, Société Générale and BNP Paribas, but also the Spanish bank Santander, the Swiss bank Crédit Suisse, the British banks HSBC and Barclays, as well as American banks such as Citigroup, Bank of America and Morgan Stanley.
All shared a common commitment: to review the emissions of their investment and credit portfolios so as to achieve carbon neutrality "by 2050 or earlier", with intermediate targets set for 2030. These targets must be made public within 18 months. New interim targets will be set every 5 years.
American banks make their presence felt
As the UN press release explains, "The alliance will work to mobilize the billions of dollars needed to build a zero-emissions global economy and achieve the goals of the Paris Agreement". According to a study by the consulting firm BCG, $5,000 billion a year will be needed until 2050.
Although this agreement has been criticized by certain NGOs, such as Reclaim Finance, which considers it insufficient, it is nonetheless remarkable for the presence of American banks. Absent from many agreements under Donald Trump's presidency, the American banks that have rallied to this "Net-Zero Banking Alliance" illustrate the United States' desire to return to a proactive policy of defending the environment.
Joe Biden had first initiated this change of tone by filing an application to rejoin the Paris climate agreement on the day of his inauguration, January 20, 2021. After leaving the agreement at Donald Trump's request, the United States officially rejoined on February 19.
The UN was able to count on John Kerry's support in rallying several American banks to this commitment to carbon neutrality.