John MacDonald: Banks vs Fossil Fuels - a cultural battleground

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.

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Canterbury Mornings podcast with John McDonald
from News Talk ZB.

Speaker 2 (00:12):
I like to well, I like to think that I
care about the climate, and I like to think that
I care about climate change. Well, I know I care,
but maybe just not as much as other people. Maybe
more than you, may be less than you, but like
most of us, if I'm really honest, I'm all a
bit token on it, which is why, or it might

(00:37):
be why. I've got absolutely no problem where as Societ
Energy Minster Shane Jones want you to take on the
big banks for refusing to lend money to the fossil
fuel industry. Got no problem with it, because you know,
I'm not like some people who I actually know, not

(00:57):
just people i've heard about or read about, but friends
of mine. I'm not like them. They are deeply committed
to try to do something about climate change, and it
shows through and the way they live their lives, and
I imagine that they will be very upset about Shane Jones.

Speaker 3 (01:15):
I'm not.

Speaker 2 (01:17):
For me. Well, I go along when it comes to
you know, the climate. I go along with all the
recycling and all that. But that's about it. So yeah,
it's all of it it's all a bit of a
token gesture. If I'm really honest, and I am always
honest with you, if I was more of an eco
warrior in reality, maybe I would be ripping into Shane

(01:39):
Jones for threatening the banks with this members bill, which
I'll admit could set quite a precedent because this member's
bill it's all about forcing the banks to do business
with the fossil fuel industry. But if Parliament forces the
banks to do business with pegul stations and the fossils

(02:00):
or the fossil industry.

Speaker 1 (02:01):
What could be next?

Speaker 2 (02:02):
Do I get that? And if I was more of
an eco warrior in reality, maybe I would be jumping
to the defense of the banks, and maybe I would
be saying this morning that they have every right to
decide who they do and don't do business with, which
technically they do. But despite all of the things the

(02:22):
fossil fuel industry gets accused of, you can't deny that
it is not an illegal operation. It's a legal business,
it's a legal sector, it's a legal industry, which is
why Shane Jones is planning this intervention to force banks
to drop what he calls their woke approach and to

(02:43):
stop treating people who own petro stations, for example, to
stop them being treated like second class citizens by the banks.
Here's a bit of what he said to Mike about
all this earlier this morning.

Speaker 3 (02:52):
The banks themselves are writing letters threatening to d bank
god fearing regional businesses. They have no options in terms
of transactional banking. They are not breaking commercial they are
not breaking any financial they are not breaking any statutory law.

(03:13):
What they are doing is offending the luxury beliefs of
these directors and executives and their chemtrailways are wandering around
the world spouting about climate chains whilst driving regional New
Zealand to penury. I've got every right to take them up.
He does.

Speaker 2 (03:29):
And he's not the only one talking about the banks
ganging up on the fossil fuel industry. The similar talk
across the Tasman with Peter Dutton, who was the Opposition
leader who really could very well be Prime Minister in
just a few months ago. And by the way, support
for Anthony Alpinesian labor is going south over there, Peter Dunton,
he's saying the exact same thing as Shane Jones, which

(03:49):
I agree with. If you are running a perfectly legitimate business,
then banks shouldn't be allowed to close their doors to you. Now,
where this has all come from is a thing called
the Net Zero Banking Alliance. It's a global thing that
banks around the world have signed up to it. It's voluntary,
but i'll tell you what, it seems a pretty good
seal job has been done on it because all up

(04:11):
there are one hundred and thirty six banks around the
world involved, one hundred and thirty six banks and forty
four countries with assets worth about one hundred trillion New
Zealand dollars. And among those one hundred and thirty six
banks are the ones who operate here in New Zealand.
And the purpose of this banking alliance is to get
banks to lend money to businesses and industries that aligned

(04:33):
with this whole idea, or this goal of having net
zero emissions by twenty fifty. So you can see why
the banks have been pulling the lending money to petrol
stations here in New Zealand because petrol it's bad, eh,
doesn't do much for achieving your net zero emissions. And look,
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, for example, to run

(04:55):
around the place and evs because that would align with
net zero, go for it. I'm perfectly happy too for
the banks to give all their staff free bus passes,
although it would be US stomers who would end up
paying for it. More than happy that would align with
your net zero. What else, solar panels and all bank branches, yep,
go for that, go for it, feee boots. But turn

(05:18):
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 a legitimate business, just as
legitimate as any other sector. And as far as I'm concerned,
I'm with Shane Jones what the banks are doing is wrong.

Speaker 1 (05:38):
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