Some authorities see climate cooperation as a violation of antitrust law to be stopped. But it's a necessary piece in tackling the climate crisis.
What do Covid-19, the Russian invasion of Ukraine, and the climate crisis have in common? All three challenge our sense of safety and illuminate the interconnected nature of the modern world. Each also calls for a reconsideration of boundaries between government and business, and the appropriate balance between competition and cooperation in business — and in antitrust law.
research has identified more than 150 business climate collaborations ranging from common carbon accounting frameworks and principles for responsible investments to shared net zero objectives. investments and take other costly actions. While these actions may lower costs in the long run, in the short term they may lead to higher prices or lower margins. First movers may find themselves at a competitive disadvantage.
climate collaborators have sometimes found a surprise — the long arm of the law. In some jurisdictions, interpretations of current antitrust laws and interpretation generally don’t consider socially desirable outcomes, meaning increased prices typically cannot be offset against broader environmental benefits to society. This means collaborating around shared climate goals might be simply illegal.
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