· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Financial Post or enjoy below:
🗞️ Driving the news: Citigroup Inc. and Bank of America Corp. have announced their withdrawal from the Net-Zero Banking Alliance (NZBA), a UN-backed global climate coalition
• The exits follow similar moves by Goldman Sachs and Wells Fargo, amid political pressures in the U.S.
🔭 The context: The NZBA is part of the Glasgow Financial Alliance for Net Zero (GFANZ), aiming to mobilize private capital for the energy transition
• Citigroup and Bank of America, both founding members of GFANZ, reaffirm their commitment to reducing emissions and supporting a low-carbon economy independently
🌍 Why it matters for the planet: The banks' decisions to leave NZBA highlight the challenges faced by financial institutions balancing climate goals with political scrutiny
• Their continued support for green financing underscores the complexity of achieving collective climate targets
⏭️ What's next: GFANZ is undergoing changes to strengthen its efforts in private capital mobilization for climate goals
• Both banks plan to continue working with clients on energy transition strategies while addressing global energy security concerns
💬 One quote: "We will continue to work with our clients on their transitions to a low-carbon economy while helping ensure energy security." – Citigroup statement
📈 One stat: Citigroup ranks as the fourth-largest underwriter of green bonds globally since 2020, while Bank of America ranks eighth
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