Competition and Sustainability – Challenges for Young Competition Authorities

Market competition is critical to a successful green industrial transition. Under competitive stress, firms innovate to capture the increasing demand for sustainable products. In dynamic markets, environmental policies work to incentivize greener production.

Yet competition rules can collide with environmental objectives. Anti-competitive practices may have environmental benefits, and vice versa. That is why governments around the world are now reviewing their competition rulebook. Some are even proposing bold changes to incorporate sustainability into competition enforcement practices.

Young competition authorities, and in particular those in EBRD regions, often operate with limited budgets, public recognition and/or political capital. Under these circumstances, authorities may wonder if prioritising green questions makes sense. Should young authorities rather focus on building the foundations of a competition culture? Or is greener enforcement an opportunity to promote the benefits of competition?