UK Proposes Guidance To Shield Competitor Agreements On Climate Change

The UK's Competition Markets Authority (CMA) has issued a proposed rule, subject to public comment through April 11, 2023, that would provide guidance on the application of UK competition law to agreements between or among competitors relating to "environmental sustainability agreements." Recognizing that the Competition Act of 1998 already contains an exemption for competitor agreements where pro-competitive benefits outweigh anti-competitive effects, the goal of the Guidance would be to establish an analytical framework under the Act that would constitute a "more permissive approach" to competitor agreements aimed at combating or mitigating climate change.

Although the Guidance refers both to "climate change" and "environmental sustainability agreements," the latter phrase is intended to be broader than the former and would include agreements that are not directly related to climate. Environmental sustainability agreements are described in the Guidance