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Executive summary
Climate change presents a pressing issue. As efforts to combat it continue, climate coalitions have emerged as a popular way to pool resources, share ideas and foster innovation.
However, the viability and future success of coalitions have come under scrutiny due to concerns over antitrust laws and against a rising tide of anti-ESG sentiment and climate-related litigation.
This report explores the relevant issues and their significance to the current business environment and the wider climate transition agenda.
Insights
- Climate action coalitions are progressively forming to accelerate the transition to net zero.
- Recently, the alarm has been raised that climate coalitions — including the Net-Zero Insurance Alliance (NZIA) — could be seen to violate anti‑trust laws, by making decisions that unfairly distort or penalise markets.
- There are calls for supervisors to offer explicit guidance on how climate coalitions should operate, and to offer "safe harbour" for certain agreements.
- There's a renewed emphasis on United-Nations-convened climate alliances to prioritise a "just transition" for all stakeholders.
- It's a balancing act that will become more challenging as we move closer to Race to Zero's mid-point targets in 2030.
- Meanwhile, the UN Environment Programme (UNEP) reiterates the "fundamental and urgent need" for continuing collaboration to tackle the climate crisis.
Published August 2023