Banks have a responsibility to keep 1.5 alive

Reclaim Finance criticizes the Net Zero Banking Alliance (NZBA) for proposing a new protocol that replaces mandatory 1.5°C alignment with a non-binding goal of limiting warming to "well below 2°C, striving for 1.5°C." The document asserts that removing the 1.5°C requirement and the 2050 net zero target is an act of irresponsibility that contradicts UN climate agreements and the IPCC's findings on the necessity of the 1.5°C limit to prevent catastrophic climate impacts. It further argues that the NZBA's justification—that the world is not on track for 1.5°C—is an excuse to avoid the financial sector's responsibility to accelerate the energy transition by reallocating capital from high- to low-polluting activities.

• The Net Zero Banking Alliance (NZBA) is voting on a new protocol that removes mandatory language from its target-setting guidelines, renaming them as "guidance," and eliminates the requirement for member banks to align financing activities with the 1.5°C temperature goal.
• Under the proposed changes, the specific target of reaching net zero by 2050 is replaced by a vague objective of achieving net zero at an unspecified future date, with banks instead encouraged to aim for warming "well below 2°C, striving for 1.5°C."
• The NZBA justifies the dilution of its targets by claiming that the 1.5°C goal prevents banks in developing countries from joining the alliance, as these nations may lack net zero targets or have targets beyond 2050.
• The document contends that the financial sector's role is to accelerate the transition by shifting capital from high-polluting to low-polluting activities, and that the current global trajectory toward 2.7°C warming makes the proposed "well below 2°C" target unrealistic and prone to further dilution.

APA

Manickawasagar, A. (2025). Banks have a responsibility to keep 1.5 alive. Reclaim Finance. https://reclaimfinance.org/site/en/2025/04/07/banks-have-a-responsibility-to-keep-1-5-alive/

Chicago

Manickawasagar, Aatiraï. Banks have a responsibility to keep 1.5 alive. Reclaim Finance, 2025. https://reclaimfinance.org/site/en/2025/04/07/banks-have-a-responsibility-to-keep-1-5-alive/.

Wikipedia

{{cite press release |last1=Manickawasagar |first1=Aatiraï |title=Banks have a responsibility to keep 1.5 alive |publisher=Reclaim Finance |date=7 April 2025 |url=https://reclaimfinance.org/site/en/2025/04/07/banks-have-a-responsibility-to-keep-1-5-alive/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{manickawasagar2025banks, author = {Manickawasagar, Aatiraï}, title = {{Banks have a responsibility to keep 1.5 alive}}, publisher = {Reclaim Finance}, year = {2025}, month = apr, url = {https://reclaimfinance.org/site/en/2025/04/07/banks-have-a-responsibility-to-keep-1-5-alive/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }