Australian Financial Services Regulator Gets Funding Boost to Fight Greenwashing

Australia’s finance minister Jim Chalmers revealed plans to fund the Australian Securities and Investments Commission (ASIC) to tackle greenwashing claims.

Speaking at a recent investor roundtable in Brisbane Chalmers said: “We will also be funding ASIC to crack down on greenwashing, more substantially, that is one of the challenges that investors confront in this part of the economy.”

The treasurer said ASIC will get AUD$4.3 million in funding to crack down on businesses making false claims as his government wanted to ensure businesses were not misleading people about claims on whether their investments were cheaper and cleaner.

“A strong and proactive regulatory approach will reduce the risk of greenwashing, supporting investor sentiment towards Australia as a destination for green capital,” he added.

Chalmers also announced plans for the Australian government to issue sovereign green bonds saying the administration would be working closely with energy investors to design a program to issue sovereign green bonds.

The green bond program will be managed by the Australian Office of Financial Management and is slated to begin in mid‑2024 following the development of a green bonds framework and engagement with investors.

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