Groundswell and the New Scaremongering About Climate Action

By Simon Wilson | Senior Writer · July 22, 2025

The debate over climate action in New Zealand has taken a new turn, with farm lobby groups Groundswell and Federated Farmers expressing strong opposition to a proposed policy aimed at combating greenwashing in the agriculture and forestry sectors. The plan, spearheaded by Climate Change Minister Simon Watts, introduces a “sustainable finance taxonomy” that would allow financial institutions to accurately assess and label the environmental impact of investments and lending decisions. This initiative is part of a broader global movement seen in Australia and the European Union, aimed at aligning economic activity with environmental sustainability.

Groundswell, a powerful farming lobby group, has labeled the proposal “the scariest thing I have seen yet,” according to its environmental spokesperson Jamie McFadden. This reaction is emblematic of a broader pattern of opposition from groups that have long resisted climate action in rural communities. While the group has evolved from fringe protests to a more influential lobbying force, its stance on climate issues remains contentious.

One of the key points of contention is the idea that banks and financial institutions should be held accountable for their environmental impact. Groundswell and other farm groups argue that such measures are an overreach, while supporters of the taxonomy plan see it as a necessary step toward transparency and accountability. The initiative would also help prevent greenwashing — the practice of overstating a product’s environmental benefits — and greenhushing, where companies avoid discussing sustainability altogether to avoid criticism.

The sustainable finance taxonomy, if implemented effectively, could open the door to new financial products that align with environmental goals, such as KiwiSaver funds that meet specific sustainability criteria. This would not only benefit investors but also encourage businesses to adopt more environmentally responsible practices.

However, the political landscape remains complex. National Party’s stance on climate issues is inconsistent, with policies that appear to support both renewable energy expansion and the continuation of fossil fuel exploration. This duality has led to criticism that the party is more focused on appeasing rural and provincial voters than on addressing the climate crisis head-on.

Meanwhile, the government faces pressure from groups like Groundswell, which have successfully lobbied to influence policy decisions. Critics argue that this kind of resistance is akin to climate denialism, and that it undermines the need for meaningful reform in the energy and agricultural sectors.

The sustainable finance taxonomy represents a significant opportunity for New Zealand to align with global sustainability trends. Whether the government will support this initiative or succumb to pressure from climate denialist groups remains to be seen. As Simon Wilson argues, the time has come for a more unified and forward-thinking approach to climate action — one that prioritizes long-term environmental and economic stability over short-term political gains.

Simon Wilson is an award-winning senior writer covering politics, the climate crisis, transport, housing, urban design, and social issues, with a focus on Auckland. He joined the NZ Herald in 2018.

Read more from Simon Wilson at nzherald.co.nz.