If a large-scale and rapid industrial transformation required for more cooperation between companies or within the sector, how should the current competition rules be updated to reflect these broader sustainability objectives?
As Cefic DG Marco Mensink noted as a panelist in a recent Oxera Consulting LLP webinar, “If we don’t cooperate, we won’t make the 2050 target.” In order to achieve the European Green Deal-inspired industrial transformation, new forms of cooperation will be required.
Increasing circularity in the chemical industry will require increased cooperation not only between companies, but along the whole value chain and between sectors. For example, companies may need to obtain a collective understanding on the strategic direction and gather relevant data which is currently unlikely to be allowed by competition law. At the same time, the European Commission is encouraging the creation of cross-industry alliances prompting new ways to collectively develop and innovate.
Marco emphasized the rapid transformation faced by the industry and highlighted that it is important for the Commission to clarify what these alliances can do without breaching competition law noting that, “We want the European Green Deal to succeed, we want competition law to stay as strict as possible & we need to compete with fair rules. Will this guidance allow us to cooperate?”
But under which circumstances should there be more flexibility for firms to cooperate with each other to achieve sustainability goals? Such areas of cooperation could be voluntary emissions reduction target setting and industry sector-wide roadmaps to climate neutrality, joint commitments by business to do (or not to do) certain things which negatively impact the environment or human health, as well as the potential of R&D collaboration.