Continuing to allow businesses to take out loans against the environment is a net negative for society as a whole if those loans are never expected to be repaid

Continuing to allow businesses to take out loans against the environment is a net negative for society as a whole if those loans are never expected to be repaid. There are few industries that break down binary "free market or bust" logic. This happens to be one of them and you cannot apply some global, arbitrarily defined, rule of responsibility when the real world is more nuanced than that.