Members of the Net Zero Banking Alliance (NZBA) are being let down by government inaction on climate change, according to a member of the alliance’s steering group.Ivan Frishberg, chief sustainability officer at Amalgamated Bank, told Responsible Investor that it was impossible for the financial sector to drive the transition if governments around the world continue to permit the expansion of fossil fuels and not support the real economy through the transition.

Governments have been criticised in recent months for their reluctance to phase out new fossil fuel projects. The Biden administration came under fire in March for approving the Willow Project, a vast ConocoPhillips oil development in Alaska, while Britain approved a new gas project in the North Sea in June last year.“The ultimate challenge that financial institutions find themselves in is they’ve committed to this thing under the assumption that governments and policymakers are going to be there,” Frishberg said. “And they’re in the process of being left alone at the altar.”

NZBA banks being ‘left at the altar’ by government inaction on climate