JPMorgan Chase, the largest US bank, has announced its departure from the Net Zero Banking Alliance (NZBA), marking the end of Wall Street's mass exodus from the key climate group.

The news comes at the same time as wildfires spread through southern California, with tens of thousands of residents forced to evacuate.

The bank joins five other major US financial institutions—Morgan Stanley, Citigroup, Bank of America, Wells Fargo, and Goldman Sachs—which have all withdrawn from the alliance in recent weeks.

"We will continue to work independently to advance the interests of our Firm, our shareholders and our clients and remain focused on pragmatic solutions to help further low-carbon technologies while advancing energy security," a JPMorgan spokesperson said in a statement.

The wave of departures comes as Republican politicians increase their scrutiny of climate-focused financial coalitions. Ohio representative Jim Jordan has been particularly critical, describing such alliances as creating "a climate cartel."

With JPMorgan's exit, only three US-based banks remain in the NZBA—Amalgamated Bank, Climate First Bank, and Areti Bank—compared to approximately 80 European members.

Despite leaving the alliance, several banks maintain they aren't abandoning their climate commitments. "Morgan Stanley's commitment to net-zero remains unchanged," the bank stated in an email to Yahoo Finance.

JPMorgan confirmed that its asset management division will continue its membership in the affiliated Net Zero Asset Managers Initiative, while also maintaining engagement with the Glasgow Financial Alliance for Net Zero, which recently announced plans to restructure its approach.

Mary Schapiro, from the GFANZ secretariat, recently announced the alliance will shift its focus to "mobilising [climate] finance through public-private partnerships," suggesting the coalition is adapting to the changing political landscape while maintaining its environmental objectives.

The mass withdrawal occurs just weeks before the anticipated Republican takeover of Washington in 2025, amid mounting political pressure regarding what right wing critics have called "woke" investing practices. The Republican Attorneys General Association, which has received approximately $5.8 million from oil and gas companies since 2020, has been instrumental in opposing climate-related initiatives. Incoming President Donald Trump meanwhile received record funding from the oil and gas industry for his campaign and prominently featured the slogan “drill baby, drill” in his rhetoric.

This follows increased scrutiny from Republican-led probes, with 14 Republican state attorneys general and 12 Republican heads of agriculture having investigated several major banks about their membership in climate groups.

Energy experts at Columbia University last year noted that Republican state attorneys general have worked to block major environmental regulations, with Michael Gerrard, head of the Sabin Center for Climate Change Law, describing the party as "a brick wall against important new environmental regulations".

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