WTO Members, Not the Appellate Body, Need to Clarify Boundaries in Renewable Energy Support
What constitutes appropriate state measures for incentivizing renewable energy development and deployment?
This key question has been posed, not only by the sustainable development community, but even more so by governments and investors around the world. On May 6, 2013, all eyes were focused on the Appellate Body (AB) of the World Trade Organization (WTO), which gave its first ruling on measures affecting the renewable energy generation sector as part of a dispute brought by Japan and the European Union against Canada (Ontario). However, the AB ruling failed to provide legal clarification and interpretation of WTO rules related to sustainable energy. At the same time, parts of its analysis may have created a broad and potentially problematic carve-out of the subsidy agreement. This commentary analyzes what this ruling meant for the legal status of feed-in tariffs, and argues that WTO members, and not the AB, should clarify boundaries in renewable energy support.
You might also be interested in
IISD Welcomes Draft Regulations for Oil and Gas Pollution Cap
A firm cap on emissions can provide certainty for industry to invest in decarbonization, while ensuring the sector is on a path to net-zero by 2050.
Credit Check
Debunking the myth that Canada can get credit under Paris Agreement Article 6 for its clean energy liquefied natural gas (LNG) exports.
Capping Potential Blowouts
This policy brief argues that the oil and gas emissions cap is necessary but cautions that some of its compliance flexibilities may amount to a critical weakening.
How Can a Fossil Fuel Levy Cut Emissions and Finance Climate Action?
A levy on extracting fossil fuels could reduce emissions and help finance climate action. How can governments implement the most effective fossil fuel levy?