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Australia’s ACCC Approves Sustainable Finance Collaboration With Conditions

By  |  July 21, 2025

The Australian Competition and Consumer Commission (ACCC) has announced its final determination to grant conditional authorization to the Australian Sustainable Finance Institute (ASFI) and participating industry members, permitting them to engage in joint efforts aimed at advancing sustainable finance initiatives over the next five years.

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    According to a statement from the ACCC, this decision enables ASFI and its members, along with other sector participants, to share information and collaborate on projects that seek to better incorporate natural capital considerations into financial decision-making. These collaborations include the co-design of investment structures, regulatory reform proposals, and limited agreements for jointly developed financial products.

    The ACCC has identified several potential public benefits stemming from the initiative, including more efficient investment processes and stronger support for sustainability-aligned outcomes in agriculture and emissions reduction. Per a statement from ACCC Deputy Chair Mick Keogh, the regulator sees value in allowing such collaborations when they contribute to broader environmental and social objectives.

    However, the authorization is not without safeguards. The ACCC has imposed five conditions designed to mitigate possible risks to competition, such as the potential for reduced market rivalry in sustainable finance products or coordinated conduct that may affect broader financial markets.

    Related: Australian Competition Commission Approves Lactalis Bid for Fonterra Brands

    “This authorized collaborative conduct will likely result in transaction cost savings, process efficiencies and increase the likelihood of investment supporting positive environmental and social outcomes,” Mr. Keogh noted in the statement.

    The authorization builds on an interim approval granted by the ACCC in March 2025, which allowed ASFI and member banks to begin discussions around reforms to banking capital requirements that could unlock more sustainable finance options. That interim arrangement will remain in effect until the final authorization is fully implemented.

    ASFI, a multi-stakeholder initiative involving the financial sector, civil society, academia, and regulators, is working under a grant from the Department of Foreign Affairs and Trade (DFAT) to attract private investment into development projects across the Indo-Pacific region. This includes support for DFAT’s blended finance initiatives.

    According to the ACCC, collaboration among businesses on sustainability efforts is often permissible under competition law, especially where the net public benefit is clear. The regulator recently released guidance to help businesses navigate legal considerations when pursuing sustainability initiatives, noting that the authorization process offers a flexible mechanism for securing legal certainty in such collaborations.

    Source: ACCC