There’s a new bill in town that would force banks to stick with fossil fuels — and companies doing serious environmental or human rights harm.

It’s called the Financial Markets (Conduct of Institutions) Amendment (Duty to Provide Financial Services) Amendment Bill – but here at 350 Aotearoa, we just call it the “you must bank with coal” bill. If it passes, banks could be banned from cutting ties with climate-wrecking companies — or companies breaching the Human Rights Act.

That means:

• Banks couldn’t ditch oil, gas, or coal companies – even when they want to
  
• Banks would be blocked from factoring in climate or certain human rights risks
  
• Banks could be exposed to risky, stranded fossil fuel assets
  
• Banks like ANZ would be forced to keep enabling climate-destroying projects — even coal mines like Denniston that we’ve been fighting to stop
  

All this, so that fossil fuel companies can continue to pollute – with guaranteed banking services. The bill surpasses even the wildest dreams of the fossil fuel lobby — meaning we need to do everything we can to stop it, and ensure that National doesn’t vote for this dangerous bill.

Submissions can be made here — and close on 4 July.  You can read the Hansard speeches of what was said during the First Reading here.

Here are a few ideas to get you started on a submission — remembering that submissions are always most powerful in your own words!

1. The bill would  force financial institutions to offer banking services to corporates causing climate and/or social harm — such as companies who breach climate reporting standards, or breach s21 of the Human Rights Act.
2. The bill punishes banks for doing the right thing, and forces banks to be exposed to risky, stranded fossil fuel assets. This government shouldn’t be forcing the banks to take fiscally nonsensical decisions and hook up with companies with huge climate risk and stranded assets. 
3. Regimes such as the climate-related disclosure framework are assisting in making these risks more visible to businesses and investors — they should be supported, not attacked.
4. For example, the bill would arguably have forced BNZ not to end banking services with Gloriavale, or made Westpac & ASB continue banking with Russian company Targa Capital Limited, whose parent was in breach of Russian sanctions.
5. If climate advocates proposed a law forcing banks to divest from fossil fuel companies, they’d be called extremists — but this is the same thing; just backwards!

350 Aotearoa currently has a campaign calling on ANZ to end banking services with Bathurst Resources. If passed, this bill would not only make our campaign unwinnable — it would force other banks to support destructive projects such as Bathurst’s Denniston coal mine on kiwi habitat.

At the date of publishing, National has not yet committed to supporting this bill past first reading, but it is possible they will support it with some amendments.  Public pressure could still tip the balance — that’s why we need to be loud about this bill.

It’s not much to ask to allow banks to say no to companies causing significant environmental or social harm.

Let’s flood Parliament with submissions calling for climate action — not protection for coal. Feel free to reach out to us at 350 (350@350.org.nz) to get involved in the campaign.

NB: If you are done with making modest submissions and want to be a little bit saucy — fair enough! We’ve made a few cheeky amendments that flips the bill on its head — and forces banks to end ties with unethical companies for good! Because hey, if we’re rewriting laws, why not do it properly?

 

¹ Hansard: First Reading Debate: Financial Markets (Conduct of Institutions) Amendment (Duty to Provide Financial Services) Amendment Bill. 21 May 2025.
²High Court Judgement – Targa Capital Vs Westpac. 17 Feb 2023
³Russell McVeagh: “Woke banking” (and other financial institutions) bill to proceed to first reading.  25 Feb 2025