“No more illusions” is the new rallying cry for climate activists, who are seizing on the failure of the Net Zero Banking Alliance (NZBA) to demand real, tangible action from governments. The collapse of the high-profile voluntary group is being framed as a pivotal moment that ends the era of corporate promises and begins the era of regulatory demands.
The “illusion,” according to groups like Reclaim Finance, was that the NZBA represented meaningful progress. They argued it was a carefully constructed facade that allowed banks to appear proactive on climate while changing very little about their core business of financing fossil fuels.
This illusion was shattered by the political fallout from Donald Trump’s re-election. When faced with “anti-woke” pressure, major banks like JPMorgan Chase, Bank of America, and HSBC quickly abandoned the alliance, revealing the weakness of their commitment. For activists, this was not a setback, but a moment of profound clarity.
With the NZBA gone, they argue, there are no more illusions to hide behind. The reality of the financial sector’s role in the climate crisis is now starkly visible. This creates a political opening to push for what they see as the only real solution.
The demand for real action is now focused on policymakers and regulators. Activists are using the NZBA’s collapse as irrefutable proof that the industry will not act voluntarily. They are escalating their campaigns, demanding binding laws to end fossil fuel financing and force the “massive reallocation” of capital that the NZBA could only promise.