The Net Zero Financial Service Providers Alliance, known as NZFSPA, has announced that it will no longer operate as a standalone initiative, adding to a growing list of net zero finance coalitions that have recently been restructured, paused, or disbanded amid political scrutiny and shifting market dynamics.

From Launch to Wind-Down

Launched in 2021, the Net Zero Financial Service Providers Alliance was created to support the financial system’s transition to net zero by aligning the services, products, and methodologies of key market infrastructure providers. Its 18 founding members included major professional services firms and data providers such as Deloitte, EY, KPMG, PwC, S&P Global, Moody’s, and London Stock Exchange Group.

The alliance brought together stock exchanges, auditors, index providers, and research and data firms with a dual mandate. Members committed to developing net zero aligned products and services to support investors and lenders, while also setting science-based climate targets for their own operations. The structure reflected the growing recognition that climate transition depends not only on asset owners and banks, but also on the data, standards, and assurance layers that underpin financial decision-making.

Part of the GFANZ Architecture

NZFSPA was one of several sector-specific coalitions operating under the umbrella of the Glasgow Financial Alliance for Net Zero. GFANZ was established to coordinate net zero commitments across the financial system, alongside initiatives such as the Net Zero Banking Alliance, the Net Zero Asset Managers initiative, and the Net Zero Asset Owner Alliance.

Over time, however, these groups have faced mounting pressure, particularly in the United States, where parts of the political landscape have framed participation in climate alliances as anti-competitive or as a form of coordinated action against fossil fuel companies. That scrutiny intensified following the return of Donald Trump to the presidency, contributing to a reassessment of how these coalitions are structured and governed.

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A Broader Pattern of Retrenchment

The decision to end NZFSPA as a standalone initiative follows similar moves across the net zero finance ecosystem. The Net-Zero Insurance Alliance was discontinued in 2024. The Net Zero Banking Alliance ceased operations in October 2025. The Net Zero Asset Managers initiative paused its work in early 2025 and later confirmed it would resume in 2026, but without explicit references to investing in line with a 2050 net zero goal in its formal commitments.

GFANZ itself undertook a significant restructuring last year, repositioning its role away from collective commitments and toward practical initiatives focused on mobilising capital for the low-carbon transition. Together, these changes signal a shift from highly visible alliance-based pledges toward more decentralised, institution-led approaches to climate action.

What Remains of the NZFSPA Work

While the alliance is no longer continuing as an independent body, NZFSPA emphasised that its work will not disappear. During its operation, the group developed target-setting frameworks for exchanges, auditors, index providers, and research and data firms. These frameworks are intended to remain available as reference tools for service providers seeking to design their own net zero aligned strategies without formal membership in a collective initiative.

In its closing statement, the coalition said that these outputs can continue to inform product development and accountability practices across the financial services ecosystem, even in the absence of a central coordinating structure.

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Exchange Group Finds a New Home

One part of the alliance will continue in a more focused form. The NZFSPA Exchange Group, which represented the largest share of members, will be integrated into the UN Sustainable Stock Exchange initiative. Within that framework, it will operate as the Net Zero Exchange Group, also known as SSE Climate Leaders.

According to the alliance, the exchange-focused work has matured to a point where it benefits from being embedded in a platform dedicated specifically to stock exchanges, their issuers, and capital markets regulation. This integration reflects a narrower but potentially more durable approach to climate leadership within market infrastructure.

Implications for Climate Finance Governance

The wind-down of NZFSPA underscores the evolving nature of climate governance in finance. Early net zero alliances played a critical role in setting expectations, normalising climate risk considerations, and accelerating the development of tools and standards. The current phase appears more fragmented, shaped by geopolitical pressures, legal risk, and differing regional attitudes toward ESG.

Despite the organisational changes, the underlying drivers remain. Investors, regulators, and corporates continue to demand credible data, assurance, and market infrastructure capable of supporting climate risk management and transition finance. Whether through formal alliances or independent strategies, financial service providers will still play a central role in shaping how climate considerations are embedded into global capital markets.

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