Corporate regulator ASIC is getting more funding under the federal budget to fight greenwashing.
The government has allocated $17.3 million over four years to promote the development of sustainable finance markets in Australia.
Funding includes $10 million, and $1.9m a year ongoing, for additional resourcing for ASIC to investigate and take enforcement action against greenwashing and other sustainability-related financial misconduct.
"Although not explicit, it is assumed this enforcement budget will at least partially be allocated to the regulator’s enforcement of the planned mandatory climate reporting regime expected to commence from January 2025," said Christian Gergis, head of policy at the Australian Institute of Company Directors.
The Australian Association of National Advertisers (AANA) in January released a draft of a new Environmental Claims Code, following an extensive public review.
Making unsubstantiated green claims has emerged as a major issue in advertising with competition regulator the ACCC in a greenwashing crackdown.
The budget also has funding to ensure the safe application of artificial intelligence (AI).
Almost $40 million will be spent over five years for the development of policies and capability to support the safe and responsible adoption and use of AI.
Funding:
- $21.6 million over four years to establish the National AI Centre (NAIC) and an AI advisory body;
- $15.7 million over two years to support industry analytical capability and coordination of AI policy development, regulation and engagement activities across government, including to review and strengthen existing regulations in the areas of health care, consumer and copyright law;
- $2.6 million over three years to respond to and mitigate against national security risks related to AI.
The federal parliament is also considering responsible AI regulation through an Senate inquiry.
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