The major American banks are withdrawing one after the other from the Net Zero Banking Alliance, a global alliance of banks for the climate set up during COP26 in Glasgow in 2021. A decision mainly motivated by the return of Donald Trump to power .
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The latest bank to announce its departure from the Climate Banking Alliance is Morgan Stanley. Earlier in the week, Citigroup and Bank of America had already withdrawn. Just like Wells Fargo and Goldman Sachs who had done the same a little earlier.
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Morgan Stanley did not justify its withdrawal. But for Éric Delannoy, president of Tenzing Conseil and banking specialist, the explanation is the return of Donald Trump to power.
“ Making a profit for banks today means putting themselves behind Donald Trump’s wheel. We must never forget that these large banks have never been as flourishing as during the term of Donald Trump, with a great wave of deregulation. This is economic pragmatism. The banks have obviously not given up on making a profit and have not realized that in the medium term, they will lose. “, he believes.
Banks ensure they are continuing their efforts in favor of the climate
In November, asset managers were also taken to court by around ten Republican states, led by Texas. They accuse them of climate activism and of trying to reduce coal production even though they have investments there.
“ When you have an alliance that promotes stopping the financing of new deposits and therefore the development of fossil fuel companies, you have the lawyers of these companies who say “wait, there is an agreement to ensure that competition rules are broken”. As such, it is legally challengeable. Well, I think it’s a risk that is rather vague », explains Éric Delannoy.
But that could serve as an excuse. For his part, the executive president of the African Energy Chamber, favorable to oil, judges that the Banks react to the needs of the market. The establishments which left the alliance, however, assure that they will continue their efforts to reduce greenhouse gas emissions.