Canterbury Mornings with John MacDonald

John MacDonald: Banks vs Fossil Fuels - a cultural battleground


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I like to think that I care about the climate and climate change. Well, I know I care.

But, like most of us —if I’m really honest— I’m all a bit token on it.

Which might be why I’ve got absolutely no problem with Associate Energy Minister Shane Jones taking on the big banks for refusing to lend money to the fossil fuel industry.

I’m not like some people who I actually know —friends of mine— who are deeply committed to trying to do something about climate change. And it shows through the way they live their lives.  I go along with the recycling and all that, but that’s about it.

If I was more of an eco-warrior, maybe I’d be ripping into Shane Jones for threatening the banks with a private members bill which —I’ll admit— could set quite a precedent. Because if Parliament forces banks to do business with the fossil fuel industry, what could be next?

And if I was more of an eco-warrior, maybe I’d be jumping to the defence of the banks and saying that they have every right to decide who they do and don’t do business with. Which, technically, they do.

But, despite all the things the fossil fuel industry gets accused of, it is not an illegal operation.

Which is why Shane Jones is planning this intervention to force banks to drop their “woke” approach and to stop treating people who own petrol stations, for example, like second-class citizens.

There’s similar talk across the Tasman. Peter Dutton —the opposition leader who could very well be prime minister in a few months in Australia— is saying the exact same thing as Shane Jones.

Which I agree with. If you’re running a perfectly legitimate business, then banks shouldn’t be allowed to close their doors to you.

Where this has all come from is a thing called the Net Zero Banking Alliance, which is a global thing that banks around the world have signed up to.

It’s voluntary, but a pretty good sell job has been done on it, obviously. Because all up, there are 136 banks around the world involved.

136 banks in 44 countries with assets worth about $NZD100 trillion.

The purpose of the alliance is to get banks to lend money to businesses and industries that align with the idea or the goal of having net zero emissions by 2050.

So you can see why the banks here have been pulling the pin on lending money to petrol stations. Because petrol is "bad" and doesn’t do much for achieving your net zero emissions by 2050.

And I’m perfectly happy if the banks want to be part of this. Good on them.

I’m perfectly happy if they want all their mobile mortgage managers to run around the place in EVs because that would align with zero emissions. Go for it.

I’m perfectly happy too for the banks to give all their staff free bus passes – although it would be us customers who would end up paying for it.  

What else? Solar panels at all branches? Yep, go for that too.  

But turn your nose up at petrol station owners and the general fossil fuel industry? No thanks.  

Because, whether the banks like it or not, they are legitimate businesses - just as legitimate as any other sector. And what the banks are doing is wrong.

See omnystudio.com/listener for privacy information.

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Canterbury Mornings with John MacDonaldBy Newstalk ZB


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