Green finance withers as Trump effect spreads
Financial hubs are ditching green finance, fresh research shows, after President Donald Trump’s return to the White House triggered a global retreat.
Centres across the world had their green finance rating reduced in the 15th edition of Z/Yen Global Green Finance Index (GFFI).
Despite topping the index, London’s rating reduced 36 points to 598.
Zurich and Singapore scored second and third at 597 and 592 respectively.
Professor Michael Mainelli, former Lord Mayor and chairman of the Z/Yen Group, said: “US influence, demonstrated by the effect on the GFCI 15 from the new administration pulling back from climate commitments shows how shallow green finance waters remain.”
One of Trump’s first executive orders following his inauguration in both 2017 and 2025 was to withdraw the US from the Paris Climate Agreement. The document encourages global co-operation to limit the causes of global warming.
Trump ran his 2024 Presidential Campaign on the motto “drill, baby, drill” and vowed the US would embark on a new age of oil and gas exploration.
Mainelli added “as the tide of support has receded from North America” it opened avenues in Asia and Europe to lead green finance.
New York had the steepest drop in the top 20 at 47 points, with Los Angeles and Washington DC not far behind at a loss of 43 points.
But Europe joined them on the decline indicating the retreat had spread globally.
The World Bank – an international development organization owned by 187 countries – became the latest institution to soften its climate approach after the US took a chainsaw to climate programs.
The bank’s President Ajay Banga stressed the importance of energy resources like nuclear power and natural gas – which the Trump administration has pioneered.
Major UK lenders have also withdrawn from green operations.
FTSE 100 giants Barclays and Natwest have removed climate targets from bonus schemes. Meanwhile, HSBC delayed its net zero goal by 20 years.