British multinational bank, Barclays, has formally withdrawn from the Net-Zero Banking Alliance (NZBA), a UN-backed coalition of financial institutions committed to aligning their portfolios with global climate goals. The move follows a series of similar departures by major players including HSBC, all major U.S. and Canadian banks, and institutions from Japan and Australia, raising urgent questions about the future of coordinated climate finance—and what that means for emerging economies, particularly in Africa.
In a statement, Barclays said its decision was driven by the shrinking relevance of the alliance itself: “With the departure of most of the global banks, the organisation no longer has the membership to support our transition.”
The bank reaffirmed its own net-zero pledge by 2050 and said it remains committed to mobilizing $1 trillion in sustainable and transition finance by 2030. It also reported earning £500 million (US$660 million) in 2024 from green and transition finance activities and has so far deployed $220 billion toward that long-term target.
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For many climate finance watchers, the message is clear: the era of large-scale, voluntary cooperation among global banks to tackle climate change is under strain. The NZBA, formed in 2021, was designed to bring banks into alignment with the Paris Agreement, helping them to decarbonize lending and investment while financing clean energy and climate resilience. It was especially vital for Africa, where many governments and project developers depend on private capital to close climate adaptation and infrastructure gaps.
Now, with its most powerful members walking away, the alliance risks losing credibility—and Africa risks losing a crucial bridge to sustainable finance.
Barclays’ exit is the latest sign that political interference in climate finance is beginning to reshape global financial alliances. In the United States, conservative lawmakers have increasingly framed climate-aligned investment as a form of political overreach. Financial institutions have come under legal and commercial pressure to withdraw from ESG-linked pacts, with some states threatening to exclude firms from public contracts if they maintain climate-related commitments.
This pressure has caused ripple effects across the global banking sector. And while most of this backlash is centered in the Global North, the impact is being felt across the Global South—particularly in Africa, where many countries have minimal responsibility for global emissions yet face some of the harshest climate consequences.
From Kenya’s drought-prone northern counties to Mozambique’s cyclone-vulnerable coastline, climate-resilient infrastructure and energy transitions will not happen without access to reliable, affordable finance. The NZBA offered at least a framework for channeling that finance. Without it—or without credible alternatives—African governments, businesses, and communities could be left with fewer options and higher costs.
Barclays insists it will continue to support clean energy and transition technologies. But its withdrawal also underscores the limits of relying on voluntary global alliances to fund Africa’s green transformation. These frameworks remain exposed to political cycles and commercial shifts that rarely prioritize the continent’s long-term needs.
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For Africa, the challenge now is not just how to respond—but how to adapt. The continent will need to invest in regional climate finance mechanisms that are resilient to global uncertainty. That could include strengthening institutions like the African Development Bank’s Climate Action Window, expanding green bond markets, and improving credit access for local climate innovators and renewable energy developers.
It also means building trust and transparency into regional systems—ensuring that African finance institutions are not just reactive recipients of climate capital but active designers of how it is sourced, priced, and deployed.
Barclays’ decision to exit the Net-Zero Banking Alliance is not just a reshuffling of global finance—it is a wake-up call. As large banks retreat from collective responsibility, the cracks in global climate cooperation are beginning to show. For Africa, the stakes are particularly high.
While participation in international alliances remains important, the continent must reduce its dependence on fragile external frameworks. Building homegrown climate finance systems, rooted in Africa’s realities and governed by African priorities, is now more urgent than ever.
