Critics Say Treasury Net Zero Principles Encourage Bank Collusion, Violate Antitrust Laws

Critics argue it is dangerous to push such an industry, which is already consolidating around a few powerful players, to act in unison for political goals.

Janet Yellen, secretary of the U.S. Treasury, speaks onstage during The Bloomberg Transition Finance Action Forum at The Plaza Hotel in New York on Sept. 19, 2023. Bryan Bedder/Getty Images for Bloomberg Philanthropies

The U.S. Treasury Department this week announced its “Principles for Net Zero Financing & Investment,” which pushes banks, insurance companies, and asset managers to unite behind U.N. climate goals. 

This latest Biden administration initiative against the fossil fuel industry comes at a time when many state officials have been pushing back against the environmental, social and governance (ESG) agenda, including boycotts of ESG banks and fund managers, as well as potential antitrust actions from state attorneys general.