Competition Law And Sustainability Agreements: Should Antitrust Laws Evolve To Allow Collaboration For Climate Goals?
- IJLLR Journal
- Oct 9
- 1 min read
Bhavika Mehta, Lawyer, BNCS Partners
Kanika Mehta, Research Scholar, Department of Commerce, Punjabi University, Patiala, Punjab, India
ABSTRACT
The climate change crisis has made both policymakers and businesses to rethink the trade-off between environmental objectives and market regulations. In India, the Competition Act, 2002 aims to prevent collusion and protect consumer welfare, yet this framework faces a tension when competitors collaborate for sustainability. Such joint measures, like industry- wide carbon footprint, cleaner technologies, or decarbonisation of the supply-chain, can seem counter-competitive in current provisions, despite their establishment of long-term consumer and societal welfare. This paper discusses the question of whether the competition law in India ought to be modified progressively to accommodate the sustainability agreements without compromising on its fundamental aims. Through law and economics approach, the work determines the extent to which consumer welfare can be construed in a broader sense to cover environmental welfare and inter- generational equity. It suggests, through a comparative approach based on EU and US experience, the use of targeted reforms, including safe harbours, pre-clearance systems, and comfort letters, that would promote bona fide sustainability alliances without increasing the chance of greenwashing cartels.
Keywords: Competition Law, Sustainability Agreements, Consumer Welfare, Incremental Reform, Climate Change
