GFANZ distanced itself from the UN expert guidance, Race to Zero, which recently published strong criteria that would align net-zero plans with scientists’ and economists’ calls to action.

Toronto | Traditional territories of the Huron-Wendat, the Anishnaabeg, Haudenosaunee, Chippewas and the Mississaugas of the Credit First Nation – “Today’s move from the Glasgow Financial Alliance for Net-Zero (GFANZ) to distance itself from the UN parent body, Race to Zero, suggests the member financial institutions will not make the trek to net-zero without new ground rules from policymakers.”

“GFANZ was supposed to be a club that turned net-zero criteria into results. Now it appears that the Race to Zero’s red lines restricting investment in new oil, gas, or coal expansion is too much for mainstream financial institutions to give up voluntarily. Dozens of financial institutions signing up to GFANZ shows tacit approval for net-zero commitments becoming a new baseline in the economy, but we clearly need better measures for accountability.”

“This clearly shows that to get results, we need regulators to enforce new rules and standards. Canada closely regulates the financial sector to make sure it works smoothly – we have to move faster to include climate within this remit. Policy that ensures financial flows are supporting a safe climate is the only way to deliver fairness across financial institutions and results for climate action.”

ABOUT ENVIRONMENTAL DEFENCE ( Environmental Defence is a leading Canadian environmental advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.

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Alex Ross, Environmental Defence,