The Australian Competition and Consumer Commission (ACCC) has granted authorisation with conditions for the Australian Sustainable Finance Institute (ASFI) and industry participants to collaborate on sustainable finance initiatives for a period of five years. This collaboration aims to enhance the integration of natural capital data into financial decision-making, co-design investment structures, and develop regulatory reform proposals.

The ACCC's authorisation allows ASFI and its members to exchange information, which is expected to facilitate the development of sustainable farming practices, assist producers in meeting sustainability regulations for exports, and contribute to emissions reduction targets. ACCC Deputy Chair Mick Keogh emphasized the potential benefits of such collaborations, stating that they are unlikely to raise significant competition concerns.

To mitigate potential public detriments, including reduced competition in sustainable finance products and coordinated behavior in financial markets, the ACCC has imposed five conditions on the authorisation. These conditions are designed to ensure that the public benefits of the collaboration outweigh any potential harms.

The ACCC has also published a guide to help businesses understand how competition law applies to sustainability initiatives, indicating that competition law should not hinder collaborations that yield net public benefits. The ACCC's authorisation process is flexible, providing legal protection for businesses aiming to achieve better environmental outcomes through collaboration.

ASFI is a voluntary collaboration involving representatives from the Australian financial sector, civil society, academia, and financial regulators. The Department of Foreign Affairs and Trade (DFAT) has supported ASFI with a grant for projects aimed at drawing private investment into development outcomes in the Indo-Pacific region.

Interim authorisation was granted to ASFI and its member banks in March 2025, allowing discussions on potential banking capital requirement reforms to facilitate sustainable finance in Australia. The ACCC's draft determination in April 2025 proposed granting authorisation with conditions for five years.