Carbon emissions transcend firms and borders—they are a massive, unpriced externality. Companies across industries are increasingly waking up to the need to cooperate in the fight against climate change but the law might get in the way. Across Europe and the U.S., regulators are discussing whether corporate climate collaborations violate antitrust law. Companies need to keep an eye on this debate, and regulators should strive to incorporate the effect of a partnership on emissions into antitrust considerations.
Gasparini, M., Haanaes K. and Tufano, P. (2022). When climate collaboration is treated as an antitrust violation. Harvard Business Review. https://hbr.org/2022/10/when-climate-collaboration-is-treated-as-an-antitrust-violation