America's largest bank, JPMorgan Chase & Co., joined the exodus from the Net-Zero Banking Alliance (NZBA) on Jan. 7. That leaves just three small American banks at the climate-focused coalition that banks formed in 2021.

"We will continue to work independently to advance the interests of our firm, our shareholders and our clients and remain focused on pragmatic solutions to help further low-carbon technologies while advancing energy security," JPMorgan said in an emailed statement. "We will also continue to support the banking and investment needs of our clients who are engaged in the energy transition and in decarbonizing different sectors of the economy."

All major US banks have left the NZBA in the past month without offering insights on why they chose to do so. The banks have been under pressure for some time from Republican-led states and members of Congress seeking to keep financial institutions from making investment decisions they deem to be harmful to fossil fuel industries or conservative values.

In early December 2024, 11 states sued the largest asset managers, many of which remain invested in fossil fuel industries, accusing them of seeking to shrink the US coal sector. Republican members of Congress, who now control both houses, have also warned US banks that their participation in NZBA and other climate alliances raises antitrust concerns.

The recent wave of NZBA departures comes just days before President-elect Donald Trump's inauguration. The new administration will usher in policies expected to favor oil and gas industries and to roll back regulations favoring climate-risk disclosures for investors.

Bank critics said the timing of the US bank exodus is not coincidental and warned it will affect the economy in the US and beyond.

"If Wall Street banks acquiesce further to climate denier politicians and fail to follow through on their climate commitments, it will isolate the US on the global stage, and the enormous costs will fall upon our global economy, financial markets and vulnerable communities," Ben Cushing, a Sierra Club campaign director, said in a statement. "Ultimately, it's up to banks' regulators, shareholders, and clients — including state and local leaders — to hold them accountable."

The United Nations-convened NZBA was formed four years ago to leverage financial sector support for efforts to decarbonize the world's economy. Members of the alliance commit to aligning their portfolios with carbon reduction goals under the Paris Agreement on climate change.

Once in office, Trump is expected to again withdraw the US from the landmark 2015 climate accord.