Abstract
The transition to a green economy is vital for sustainable development and environmental preservation in India. As the renewable energy sector rapidly expands and sustainable business practices become mainstream, the dynamics of market competition are undergoing significant transformation. This paper critically examines the emerging antitrust concerns in India’s green economy, particularly focusing on the renewable energy sector and the promotion of eco-friendly initiatives. It explores how dominant players might engage in anti-competitive conduct under the guise of green innovation and how market entry barriers could potentially stifle competition. The study analyzes the adequacy of existing Indian competition laws in addressing these challenges, particularly through the lens of the Competition Act, 2002, and the evolving jurisprudence of the Competition Commission of India (CCI). It also draws comparative insights from international frameworks to suggest robust regulatory mechanisms that ensure fair competition without hindering sustainable progress. Ultimately, the paper advocates for a balanced legal approach that fosters innovation, encourages new market entrants, and ensures that green growth does not come at the cost of consumer welfare and competitive fairness.
Keywords: Green Economy, Competition Commission of India (CCI), Renewable Energy, Sustainable Development.
Introduction
Global economies are undergoing rapid change in the 21st century with a move away from fossil fuel-based business models towards sustainable and environmentally friendly ones. This shift has been driven by an increasing awareness of environmental problems, global climate treaties, and governmental programs encouraging renewable energies and environmental protection. India, being one of the fastest-growing economies in the world, has been actively pushing towards renewable energy and sustainable practices in order to achieve the Nation’s commitments to climate change while meeting the long-term economic development goals. In an expanding green economy, however, it poses a fresh set of regulatory challenges, especially within the field of competition law. The control of competition in India’s green economy has become a major concern, as policymakers try to reconcile sustainability goals with the requirement to keep competition fair and open.[1]
Competition law has an essential function in ensuring that firms act in ways which benefit efficiency, innovation and consumer welfare. Competition law traditionally has been concerned with the prohibition of monopolistic maneuvers, collusion and market distortion. [With] the growth of green markets, however, forms of anti-competitive behavior new to the business world have also appeared. These include dominant firms manipulating the renewable energy sector, collusion among businesses under the pretext of sustainability collaborations, greenwashing (misleading environmental claims), and unfair market concentration driven by state subsidies or preferential policies.[2] As a result, competition regulation in India’s green economy needs a delicate balance that reconciles environmental sustainability and the principles of equitable competition.
India has come a long way in the area of renewable energy put India in a top rank player in wind and solar energy production. Government policies such as the National Solar Mission, Renewable Energy Certificates (RECs), and Green Energy Open Access Rules have provided strong incentives for businesses to invest in green initiatives. Furthermore, net-zero pledges, energy efficiency standards and Environmental, Social and Governance (ESG) compliance are influencing corporate strategies. Nonetheless, although these measures have promoted sustainable development, they have also evoked doubts regarding market distortions.[3]
One of the key concerns is the emergence of dominant players in the renewable energy sector, who may engage in exclusionary practices such as predatory pricing, exclusive supply agreements, or control over critical infrastructure like transmission grids. Additionally, the partnerships between firms in the name of sustainability alliances may potentially break competition laws those agreements result in unity of prices or loss of market competition. The practice and importance of state subsidies and preferential policies also deserve careful attention, because they can potentially narrow the playing field to the benefit of some companies instead of others.
[1]Souvik Ghosh and Subhajit Chakraborty, ‘Sustainability Goals vs. Competition Law: Global Trends and Challenges’ (2024) 11(2) International Journal of Management and Humanities https://www.ijmh.org/wp-content/uploads/papers/v11i2/B176011021024.pdf accessed 20 March 2025.
[2] Javier Martínez-Falcó, Bartolomé Marco-Lajara, Eduardo Sánchez-García, and Luis Antonio Millán-Tudela (eds), Modern Insights in International Trade and Commerce (IGI Global 2024) https://books.google.co.in/books?id=9YUoEQAAQBAJ accessed 20 March 2025.
[3] Anuradha Jain and Narender Kumar, ‘Emerging Trends in Competition Law and Economics in India: Insights and Implications’ (2024) Volume XV, Issue No. 1, CPJ Law Journal, CPJ School of Law, Narela, Delhi, 123 <CPJ College of Higher Studies & School of Law> accessed 20 March 2025.