Climate change and the energy transition: what role for Article 101(3) TFEU?

This chapter explores the interaction between competition law and especially Article 101(3) TFEU and environmental and climate change goals in the context of the EU’s Green Deal and the aim of energy transition. First, it reviews the evolution of the Commission’s and national authorities’ approaches to environmental and climate benefits in their general assessment of horizontal and vertical agreements in the energy sector over the past two decades, most recently in the form of the 2023 Horizontal Guidelines. Next, the chapter zooms in on four types of agreement that are of particular relevance to the renewable energy transition, examining joint purchasing, infrastructure collaboration, R&D cooperation and long-term contracts in vertical relationships. Overall, recent developments show that EU competition law is able to take account of climate benefits, although such benefits do not provide a blanket exemption, and agreements restricting competition will be scrutinized closely.