Morgan Stanley has decided to withdraw from the Net-Zero Banking Alliance, joining Citigroup and Bank of America as the third major U.S. bank to do so this week.

This move comes ahead of Donald Trump's expected return to the White House, where he has expressed his intention to increase oil production and reduce subsidies for green technologies.

The departure of Morgan Stanley, along with Goldman Sachs and Wells Fargo, signifies a significant change in the banking sector's commitment to sustainability initiatives.

JP Morgan is now the only major Wall Street bank that remains part of the alliance, which was established during the 2021 UN climate summit in Glasgow, led by Mark Carney and Michael Bloomberg.

Despite leaving the alliance, Morgan Stanley has reaffirmed its dedication to achieving net-zero emissions and will continue to report on its progress towards interim emissions targets set for 2030.

The GFANZ spokesperson has stressed the crucial role of private financing in facilitating the global energy transition and plans to increase efforts to mobilize private capital starting in 2025.