The Competition and Markets Authority (CMA) under the leadership of Chief Executive Sarah Cardell, issued the Green Agreements Guidance on Thursday. The guidance provides clear rules on how competition laws apply to businesses engaged in environmental sustainability efforts and climate change solutions.
The Green Agreements Guidance encourages industry and competitor collaboration, outlining how companies can legally establish green goals without infringing competition law. It also assures firms of exemptions from competition law enforcement when their agreements genuinely aid in mitigating climate change. The CMA has emphasized the need for collaboration between competitors to promote environmental sustainability.
The CMA's guidance follows its advice to the UK government in March 2022 and is intended to provide clarity on competition law as it applies to horizontal agreements on environmental sustainability between firms at the same supply chain level.
To ensure businesses comply with these guidelines and avoid enforcement actions, the CMA has launched an awareness campaign that includes a video and a roadmap outlining various risk categories. Furthermore, they offer an open-door policy for informal guidance on proposed green initiatives.
Cardell highlighted the CMA's commitment to supporting businesses in their efforts to tackle climate change and boost the green economy. Practical examples were provided, such as one from the fashion sector, demonstrating how firms can set sustainable material targets without violating competition law.
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