Competition benefits consumers. However, there may be instances where business competitors need to collaborate for the greater, or greener, good. Seeking to achieve net-zero emissions by 2050 under the Singapore Green Plan 2030, Singapore has embarked on a whole-of-nation sustainability movement. Businesses play an important part in this sustainability movement but may be hindered from doing so due to issues of scale and finance. One way to overcome these issues is via collaborations. However, businesses may be reluctant to collaborate due to fears of falling foul of competition laws.
The Competition and Consumer Commission of Singapore (“CCCS“) recognises that the sustainability movement may involve business competitors engaging in various forms of collaborations in existing, emerging or new markets in pursuit of environmental sustainability objectives. Following a public consultation exercise that ran from 20 July to 4 September 2023, CCCS has issued, on 1 March 2024, its Guidance Note on Business Collaborations Pursuing Environmental Sustainability Objectives otherwise known as the Environmental Sustainability Collaboration Guidance Note (“ESCGN“), which aims to provide greater clarity to businesses on how CCCS will assess collaborations pursuing environmental sustainability objectives, so that such collaborations may be pursued in a way that does not harm competition.
This Update briefly outlines salient aspects of the ESCGN.
For more information, click here to read the full Legal Update.
