Subscribe | Log In

Related

Exodus Causes GFANZ Reorganisation

Share post:

Stockholm (NordSIP) – In its yearly update for 2025, the Glasgow Financial Alliance for Net Zero (GFANZ) announced a number of changes to its goals and structure. These changes have been perceived as being impactful on the organisation and representative of the ongoing shift by North American institutions away from strong commitments to decreasing greenhouse gas emissions.

“GFANZ will transition to an independent Principals Group, led by CEOs and leaders from financial institutions acting to address barriers faced in mobilizing capital for the transition around the world – including sovereign wealth funds, financial institutions, and market participants in countries with longer transition pathways,” the 2025 New Year Update from the GFANZ Secretariat said on January 2nd.

“The Glasgow Financial Alliance for Net Zero (GFANZ) going forward will allow any financial institution working to mobilize capital and lower the barriers to financing energy transition to participate,”  Michael Bloomberg, Mark Carney and Mary Schapiro, who have been leading GFANZ, said in parallel to the announcement at the end of the year.

According to GFANZ, this decision is motivated by the perceived success of the alliance’s work thus far. “Since its launch at COP26, GFANZ has achieved its initial goal of developing the building blocks of a financial system capable of financing the transition to net zero,” GFANZ secretariat adds. Going forward, the alliance will focus on transition efforts bridging gaps in data, action and investment. It seems that the announcement of GFANZ’s leadership speaks to the latter of these three considerations.

Going forward, “GFANZ will turn its focus to closing the investment gap to help unlock the more than $5 trillion a year opportunity created by countries modernizing their energy systems and putting economies onto a low-carbon path in the next decade,” GFANZ’s Secretariat explained. The same announcement also noted that the focus will be on mobilizing finance through public-private partnerships “such as country platforms and Just Energy Transition Partnerships (JETPs) – including Brazil, Indonesia, and Vietnam – to ensure they bring private finance to the table alongside governments, multilateral development banks (MDBs), and other development partners.”

Upon its creation, GFANZ’s goal was to “mobilise the trillions of dollars necessary to build a global zero emissions economy and deliver the goals of the Paris Agreement. GFANZ will provide a forum for strategic coordination among the leadership of finance institutions from across the finance sector to accelerate the transition to a net zero economy,” the organisation said back in 2021. “All initiatives in GFANZ require signatories to set science-aligned interim and long-term goals to reach net zero no later than 2050 in line with Race to Zero’s criteria. These goals are supplemented by member-determined short-term targets and action plans,” its inaugural announcement added.

 

Image courtesy of Roel Dierckens via unsplash

From the Author

Recommended Articles