Republican pressure forces US banks to abandon green goals

It is already the third major US bank to withdraw, now that companies backtrack on promises with Donald Trump returning to the US presidency

Citigroup announced on Tuesday that it is leaving the world’s largest climate alliance to banks, the latest sign that the US corporate sector may back away from climate targets during Donald Trump’s second term as president. from the USA.

Citi is the third major U.S. bank to exit the Net-Zero Banking Alliance this month, following Goldman Sachs and Wells Fargo.

The UN-backed climate pledge, which Citi helped launch in 2021, was hailed as a major step toward reducing global warming by limiting investment and lending to industries that contribute to greenhouse gas emissions.

In a statement, Citi said it remains committed to its climate goals despite leaving the alliance, and plans to refocus its efforts to provide capital to emerging markets to support climate initiatives in those countries.

“We will continue to work with our customers on their transitions to a low-carbon economy, while helping to ensure energy security,” the bank said.

However, U.S. banks and other large companies have faced increasing pressure from Republican lawmakers to back away from commitments that would require banks to reduce lending to the oil and gas industry or other traditional energy producers.

This pressure increased after Trump’s presidential victory.

In November, Republican-led states filed a federal antitrust lawsuit against BlackRock, State Street and Vanguard, accusing the three largest U.S. index fund managers of using their investment power to restrict supplies in pursuit of net-zero emissions goals. carbon.

With information from the Financial Times*