Established in 2021 under the United Nations Environment Program's Financial Initiative, the Net-Zero Banking Alliance (NZBA) aims to promote banks to cut carbon emissions in loans and investments, while supporting the transition to a net zero emissions economy by 2050.
At its peak, the alliance had nearly 150 members.
However, the climate banking alliance has been losing members since the end of last year.
Six major US banks - including JPMorgan Chase, Goldman Sachs and Bank of America - have left the alliance following last year's US presidential election, with Canadian and Japanese banks also taking steps.
The British giant Barclays was one of the last banks to leave the alliance in August.
The Net-Zero Bank Alliance suspended operations at the end of August and awaited the votes of its members.
"Members of the Net-Zero Banking Alliance (NZBA) voted to convert from a membership-based alliance model to a set of guidelines as an official framework. With this decision, NZBA will immediately cease operations," a NZBA spokesperson announced on October 3.
According to NZBA, although the alliance has disbanded, banks can still use the initiative's "Climate Target Setting Guidelines for Banks" to achieve carbon emission reduction goals.
"Departmental banks around the world can continue to use and refer to these resources to help develop and implement their own net-zero transformation plans," said NZBA.
