A major United Nations-backed initiative has gone from a symbol of convening power to a case study in crumbling power. The Net Zero Banking Alliance (NZBA), convened by the UN Environment Programme, has failed and shut down, raising questions about the effectiveness of the UN’s partnership-based approach to global challenges.
The UN’s convening power was on full display at the NZBA’s launch. It successfully brought together nearly 150 of the world’s most powerful banks under a single banner, creating what appeared to be a formidable force for climate action.
But this convened power proved to be incredibly fragile. It crumbled at the first sign of serious political opposition. When the US political environment turned hostile after Donald Trump’s re-election, the UN could do nothing to prevent the six largest American banks from walking away.
The power of the alliance continued to crumble as international banks like HSBC and Barclays followed suit. The UN, having outsourced the leadership of the alliance to the banks themselves, was left a bystander as its flagship financial initiative disintegrated.
The failure of the NZBA is a blow to the UN’s strategy of relying on voluntary, multi-stakeholder partnerships. It demonstrates that while the UN can bring powerful actors to the table, it lacks the power to keep them there when the political or economic costs become too high. This has led to calls for the UN to shift its focus from convening voluntary pacts to advocating for binding international treaties on climate finance.