This greenwashing is a direct fallout from IAMs in IPCC AR6 WGIII Ch3


"The world’s biggest climate coalition for bankers says it has the right to ignore a proposal that would require members to phase out the financing of fossil fuels."






Bankers Told They Can Ignore Binding Fossil-Finance Restrictions


World's most powerful climate alliance for bankers issues clarification

after some members indicated they were ready to walk out


The world's biggest climate coalition for bankers says it has the right

to ignore a proposal that would require members to phase out the

financing of fossil fuels.



Tracey McDermott, chair of the Net-Zero Banking Alliance, said in a

letter on Monday that the 119-strong group, which counts Deutsche Bank

AG, Goldman Sachs Group Inc. and UBS Group AG among signatories, has

"an autonomous governance structure and decision making process" and

any changes to its guidelines "can only take place in accordance with

that governance."


The clarification was issued after the United Nations-backed Race to

Zero campaign, which reviews and accredits net-zero initiatives,

updated its criteria in June to put forward more stringent

decarbonization targets. That move angered a number of Wall Street

firms, with JPMorgan Chase & Co., Morgan Stanley and Bank of America

Corp. all threatening to walk out over the issue, people familiar with

the matter said last month.


Efforts to reassure bankers that they can continue to finance oil, gas

and even coal come less than a month before the COP27 climate summit in

Egypt. The event looks set to draw far fewer financial chief executives

than attended the COP26 summit in Scotland last year, Bloomberg News

has reported.


Monday's statement drew calls for the broader coalition - the Glasgow

Financial Alliance for Net Zero - to clarify how members can achieve

the net-zero emissions to which they've committed.


"NZBA is saying it is part of GFANZ and that doesn't have anything to

do with Race to Zero. But to be part of GFANZ you need be part of Race

to Zero," said Ben Caldecott, director of the Oxford Sustainable

Finance Group at the University of Oxford Smith School of Enterprise

and the Environment. "Will GFANZ ditch this requirement and if it does,

what are the new criteria to be part of GFANZ? And who marks that



Changing the Language


McDermott, who is also group head of conduct, financial crime and

compliance at Standard Chartered Plc, underlined that it "is important

for members to understand that Race to Zero does not have the ability

to impose requirements either on the NZBA as a whole or on individual

members," according to Monday's statement.


Race to Zero had put forward an explicit requirement to phase down and

out unabated fossil fuels, including coal. The group has since revised

its language and emphasized that members must "independently find their

own route" to the 1.5C-aligned climate goal and do so by following the

"most appropriate" science-based pathway. The new guidelines are due to

come into effect from June 2023.


"The NZBA will independently consider RtZ's updated criteria, together

with any other relevant changes in the external environment and any

lessons we have learned over the first years of implementing net zero

commitments, and decide, through established NZBA governance, whether

any changes should be made to our Guidelines to reflect these," said



"The work we have ahead of us is challenging but more necessary than

ever," she said. "We remain firmly committed to the banking sector

playing its part to achieve the 1.5C pathway." McDermott said the NZBA

guidelines will be reviewed by 2024 at the latest.


The bankers' alliance is a sub-group of the Glasgow Financial Alliance

for Net Zero. GFANZ is co-chaired by former Bank of England governor

Mark Carney and Michael R. Bloomberg, the founder of Bloomberg News

parent Bloomberg LP.