A report by the Nordic competition authorities on the interaction between competition policy and environmental policy has been published.
The Competition Authority calls on the Icelandic government and the business community to consider the interplay between competition and environmental matters when formulating environmental policy.
It is foreseeable that in the future, environmentally friendly values and policies will have a much greater impact on government economic policy and market activities than has been the case to date. The main international organisations are now placing great emphasis on creating the conditions for sustainable economic growth.
Competition generally promotes increased productivity and innovation, which are important factors in shaping a green economic environment. Furthermore, active competition can contribute to environmental policies achieving better results in the marketplace. Thus, active competition increases the likelihood that environmental policies will achieve their intended results, while also ensuring that consumers benefit from active competition. This is discussed in a new report by the Nordic competition authorities, 'Competition Policy and Green Growth', which is published on the Competition Authority's website today.
The report points out that environmental policy can in some cases lead to less competition, although the objectives of environmental and competition policy are fundamentally the same, namely to protect and promote the general welfare. It is therefore important to seek solutions to environmental issues that disturb competition as little as possible.
The report describes the main elements of environmental policy, reviews the policy measures that governments can use to reduce the harmful effects of market activities on the environment, and analyses the potential impact of these measures on competition. It is recommended that governments use market-based solutions, such as green taxes and the sale of emissions allowances, as much as possible to achieve the desired results.
The report will be specifically presented to ministries, institutions for business and environmental affairs, Members of Parliament and business interest groups. It is available on the Competition Authority's website, along with an Icelandic translation of the summary.
„It is extremely important to promote healthy competition alongside government policies aimed at reducing the harmful environmental impacts of production and consumption. This is both because effective competition promotes improved consumer welfare and because effective competition can increase the efficiency of environmental policies.“
says Páll Gunnar Pálsson, Director General of the Competition Authority.
[PDF – opens in a new window] Press release
[PDF – opens in a new window] Extract from the report of the same name by the Nordic competition authorities
[PDF – opens in a new window] The report in its entirety in English
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