Another financial giant leaves the climate banking alliance. The fall of the green scam is simply a substance of time

In fresh months, the financial planet has seen crucial changes in the approach of major banks to climate issues. Another powerful player who chose to leave the climate banking alliance is the nipponese Mitsubishi UFJ Financial Group (MUFG). This decision creates controversy, especially as the bank joins the group of institutions that had previously left Net-Zero Banking Alliance (NZBA), including those that were co-founders of the organization.

Mitsubishi UFJ resigns from NZBA – what does that mean?

According to user X, which is called Exchange Information, “the largest nipponese bank Mitsubishi Financial Group has just reported that it is definitely leaving the climate alliance. It is followed by another banks.” This decision was confirmed by the Bank's president, who, in an interview with Bloomberg TV, indicated that the institution intends to focus on fossil fuel assets specified as oil, gas and coal.

"In an interview on TV, he reported that descriptions of the failure of value of Green Energy projects would be possible," he added. This message suggests that the bank foresees difficulties in achieving green energy targets and decides to focus on conventional energy sources.

Wave to leave Net-Zero Banking Alliance

MUFG is not the only bank that has decided to take specified a step. According to Bloomberg, "Mitsubishi UFJ Financial Group (MUFG) plans to leave the largest climate alliance in the banking industry, joining national counterparts in leaving a group abandoned by American and Canadian tycoons".

Earlier, NZBA had already experienced institutions specified as JPMorgan Chase, Bank of America and the Royal Bank of Canada. Interestingly, Bank of America and Citi Bank, who were co-founders of the alliance, besides left the organization at the end of last year.

"MUFG follows the footsteps of rivals from Tokyo, Nomura Holdings and Sumitomo Mitsui Financial Group, leaving the climate group. The latest departures emerged after the wave left NZBA's largest banks in the US and Canada," the article highlighted.

Why do banks quit fighting for climate?

The decision by Mitsubishi UFJ and another banks raises questions about the future of global climate action. Are financial institutions withdrawing from the fight for green energy, or are they changing the strategy? The MuFG spokesperson pointed out that the bank had "not yet made its decision and will proceed working urgently to address climate change". However, focusing on fossil fuels suggests that the bank's priorities have changed.

Experts point out that the departures from NZBA may consequence from rising energy transition costs and force from investors who anticipate unchangeable profits. In the case of Mitsubishi UFJ, the decision may besides be dictated by the specificity of the nipponese market, which is inactive mostly based on conventional energy sources.

What about the global climate struggle?

The departure of further banks from Net-Zero Banking Alliance poses a challenge to global efforts to reduce CO2 emissions. The Alliance, which was to be a platform for the cooperation of the largest financial institutions in the fight against climate change, is losing its importance. Will another banks follow in Mitsubishi UFJ's footsteps? Will there be fresh initiatives to replace NZBA?

These questions will be answered in the close future. 1 thing is certain – the decisions of the largest financial players have a immense impact on global climate policy.

— Exchange information (@GPW_Trader2022) March 18, 2025