New Zealand has opened an investigation to determine if commitments by lenders under the Net-Zero Banking Alliance could breach anti-cartel regulations, the country's competition watchdog said.
The New Zealand Commerce Commission is investigating whether banks' commitments to climate change initiatives could potentially breach anti-cartel laws. This probe was initiated after concerns were raised about banks possibly colluding to reduce lending to carbon-intensive sectors, which might contravene the Commerce Act's prohibition on price fixing and other anti-competitive behaviors. The investigation focuses on whether these climate commitments, often made in collaboration with other banks, could be seen as agreements to limit or control the supply of financial services. The Commission has not yet concluded if there is a breach but is examining the nature of these commitments to ensure they do not unfairly restrict competition. This inquiry reflects a broader global scrutiny on how environmental, social, and governance (ESG) considerations might intersect with competition law.
Travel & Leisure
