EU To Allow Cooperation Between Competitors In Sustainability Projects

In the beginning of June, the European Commission approved new guidelines for cooperation between competitors in projects that involve sustainability objectives. These guidelines help ensure that competition law will support legal cooperation to achieve climate goals and other sustainability goals. The reform provides a framework for cooperation between competitors as well as cooperation in trade associations and makes it possible for various stakeholders to work together.

This reform is a significant step in the right direction. Thus far, excessive caution and fear of competition law sanctions have hindered important sustainability projects. The reform will facilitate cooperation between companies that operate in the same sector in performing due diligence under the upcoming Directive on Corporate Sustainability Due Diligence.