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ARTICLE · 23 SEPTEMBER 2024

CMA Guidance On Environmental Agreements

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The CMA's 2023 guidance clarifies how UK competition law applies to environmental sustainability agreements (ESAs) between competitors. It outlines permissible collaborations, exemption criteria, and the CMA's open-door policy to encourage climate-related cooperation while ensuring compliance, reducing legal risks for businesses.

United StatesAntitrust/Competition Law
Mark Hills
Mark Hills
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Key takeaways

  1. The CMA's Green Agreements Guidance sets out its approach to applying competition law in relation to agreements between competitors that are aimed at reducing the adverse impact of economic activities on the environment, or transitioning towards environmental sustainability. The Guidance does not, however, apply to social and governance related initiatives within companies' ESG strategies.
  2. The Guidance is of assistance to companies participating in cross-industry collaboration on environmental matters and, particularly, in respect of net-zero strategies in the UK
  3. Companies considering any form of collaboration with competitors on environmental sustainability issues should consider the Guidance, with the following focus areas:

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