Summarised by Centrist
The Commerce Commission has rejected claims that New Zealand’s biggest banks colluded to impose climate-linked lending rules on farmers, despite growing concern that net zero ideology is narrowing access to credit.
Federated Farmers alleged ANZ, ASB, BNZ, Westpac and Rabobank were acting like a cartel by aligning with the UN-backed Net Zero Banking Alliance.
Together, the five control 97 percent of agricultural lending. The group argued the alliance risked reducing loan options for rural borrowers and driving up costs.
But the Commission found no evidence of illegal coordination. Competition manager Vanessa Horne said each bank had made its own decision independently and there was no breach of the Commerce Act. The alliance does not mandate specific targets, but provides a framework for assessing emissions and steering capital toward low-carbon activities.
Federated Farmers spokesperson Mark Hooper accepted the decision but said their concerns remain, which justified the action “We felt there had been some collusion and there was a sort of collective agreement that would have limited farmers’ choices,” he said. “We still think it was the right course of action.”
New Zealand First MP Andy Foster has proposed a private member’s bill to stop banks from declining loans for reasons tied to so-called “woke” policies, including fossil fuel use.
The Net Zero Banking Alliance now includes 127 banks managing over $74 trillion globally.
