Dec 31 (Reuters) - U.S. banks Citigroup ( C/PN ) and Bank

of America ( BAC ) said on Tuesday they are exiting the Net-Zero

Banking Alliance (NZBA), a group of global banks that have

pledged to curb greenhouse gas emissions.

They follow

Wells Fargo ( WFC ) and Goldman Sachs ( GS ), which both

left the alliance earlier this month.

Financial firms, historically criticized for their

connections to the fossil fuel industry, have made efforts to

incorporate net-zero standards more prominently into their

operations.

However, they have begun scaling back on some initiatives to

avoid irking Republican policymakers who are opposed to limiting

the financing of fossil fuels.

Citi said it had made progress toward its own net-zero goals

and decided to leave the NZBA.

BofA, in an emailed statement to Reuters, said: "We will

continue to work with clients on this issue and meet their

needs."

The NZBA aims to bring down carbon emissions from the

lending and investment portfolios of its members to zero on a

net basis by 2050.

Last month, BlackRock ( BLK ), Vanguard and State Street

were sued by Texas and 10 other Republican-led states, which

said the large asset managers violated antitrust law through

climate activism that reduced coal production and boosted energy

prices.