NZBA Reports Strong Net Zero Progress at COP28

The UN-convened Net Zero Banking Alliance (NZBA) presented a ‘progress update‘ during Finance Day (4 December) at COP28 in Dubai, delineating recent actions by members in setting climate targets. As of 30 September, 96 banks, constituting 71% of its 136 members, had successfully set net zero targets. Further, 87% of banks due to set their initial targets met the deadline, with an additional three banks proactively setting targets ahead of schedule. Member banks are expected to establish net zero targets within 18 months of joining the alliance. Challenges hindering some banks from meeting deadlines were identified, primarily linked to smaller developed market banks grappling with capacity-building hurdles and emerging market banks facing data deficiencies for target formulation, the report noted. Setting and meeting targets posed technical challenges for member banks, necessitating adeptness in carbon accounting, methodologies, risk modelling, and the scaling of new opportunities and capacities. The next comprehensive progress report, slated for summer 2024, will delve deeper into the status of net zero targets and monitor progress closely. The report aims to highlight common elements in target settings, including coverage, scenario usage, and emissions disclosure in both intensity and absolute terms. Launched in 2021 with 43 banks, more than a third of the NZBA’s membership now comprises banks from emerging and diverse markets, signifying a broadening global interest in combating climate change. 

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