UK Competition Watchdog To Ease Rules On Climate Change

The UK competition regulator will ease the antitrust rules on climate change initiatives to tackle business concerns that collaboration on climate action could expose them to claims of collusion.

The move comes after a wide range of groups, led by the financial sector alliance known as Gfanz, spearheaded by former Bank of England governor Mark Carney, said fears of antitrust enforcement action prevented them from taking a tougher stance on climate action.

Sarah Cardell, new chief executive of the Competition and Markets Authority, will tell a forum in Edinburgh on Tuesday night that it plans to ease restrictions on how closely businesses can co-operate when it comes to sustainability plans.

Related: When Climate Collaboration Is Treated as an Antitrust Violation

“We know there is pent up demand among business, including insurers and asset managers who form such an important part of the Edinburgh economy, to work together on initiatives that would combat or mitigate climate change,” Cardell will say.  

“Brexit has allowed us to take a fresh look at the guidance we give firms. This has given us the opportunity to go further than we have before in providing reassurance and clarity on our approach — including spelling out where we won’t take enforcement action against business collaboration to tackle climate change.”