CMA Draft guidance on the application of the Chapter 1 Prohibition in the UK Competition Act 1998 to Environmental sustainability agreements (28 February 2023)

ClientEarth and Simon Holmes’ contribution to the UK CMA public consultation

We very much welcome the tremendous development in the CMA’s approach to the urgent need to integrate sustainability considerations into modern competition law. In particular, the approach taken by the CMA will help businesses which are ready and willing to work together to achieve the UK’s net zero targets and fight climate change. In this, the CMA has joined the ranks of the leading national competition authorities such as the Dutch and Austrians.

The key issues which we would urge the CMA to consider further are:

(i) extending its “more permissive approach” to other systemic existential threats such as biodiversity loss, and the degradation of ecosystems – ideally now but, at the very least, committing to reviewing this in the near future; and (ii) extending the benefits taken into account when assessing the “fair share to consumers” to consumers worldwide consistent with the CMA’s (rightful) recognition that climate change has devastating affects “outside of the UK and immeasurable long-term effects on the whole planet”.