The ACCC's draft determination proposes to grant authorisation with conditions for the Australian Sustainable Finance Institute (ASFI) and its members to collaborate on sustainable finance initiatives. This collaboration is intended to improve the integration of natural capital data into financial decision-making and to co-design investment structures that align with sustainability goals.

ASFI seeks to facilitate sustainable farming practices, assist producers in meeting sustainability regulations for exports, and contribute to emissions reduction targets. The overarching goal is to increase the flow of private capital into sustainable investment opportunities, which is expected to enhance environmental preservation and create cost efficiencies.

However, the ACCC has expressed concerns that such collaborations could reduce competition in the supply of sustainable financial products and broader financial markets due to potential coordinated behavior among competitors. To mitigate these risks, the ACCC has proposed amendments and conditions to the collaborative conduct, ensuring oversight and transparency in information sharing.

ACCC Deputy Chair Mick Keogh stated that the proposed conditions are designed to ensure that the public benefits of the collaboration outweigh any potential harm to competition. The ACCC is currently seeking submissions on the draft determination until May 2, 2025, before making a final decision.

ASFI is a voluntary collaboration involving various stakeholders from the Australian financial sector, civil society, and academia. The initiative has received support from the Department of Foreign Affairs and Trade (DFAT) to attract private investment into development projects in the Indo-Pacific region.

Interim authorisation was granted to ASFI and its member banks on March 7, 2025, allowing them to discuss and exchange information regarding potential reforms to banking capital requirements that would facilitate sustainable finance in Australia.