In the first dispute on renewable energy to come to World Trade Organization (WTO) dispute settlement, the domestic content requirement of Ontario’s feed-in tariff was challenged as a discriminatory investment-related measure and as a prohibited import substitution subsidy. The panel and Appellate Body agreed that Canada was violating the GATT and the TRIMS Agreement. But the SCM Article 3 claim by Japan and the European Union remains unadjudicated, because neither tribunal made a finding that the price guaranteed for electricity from renewable sources constitutes a ‘benefit’ pursuant to the SCM Agreement. Although the Appellate Body provides useful guidance to future panels on how the existence of a benefit could be calculated, the most noteworthy aspect of the new jurisprudence is the Appellate Body’s reasoning that delineating the proper market for ‘benefit’ analysis entails respect for the policy choices made by a government. Thus, in this dispute, the proper market is electricity produced only from wind and solar energy.
Canada–Renewable Energy: Implications for WTO Law on Green and Not-So-Green Subsidies
In the Canada–Renewable Energy/Feed-In Tariff case of 2013, the European Union (EU) and Japan brought a case to the World Trade Organization (WTO) ...
On the Issues: Climate in the Democratic Debate, China’s Carbon Trading Breakthrough, and More
Connecting this week's environmental and energy news to RFF's economic research.
Media Highlight — Dec 23, 2019
US Senators Ask for Government Investigation of Coal Tax Credit Program
"Three U.S. Democratic senators have asked the investigative arm of Congress to evaluate a $1 billion-a-year subsidy for burning chemically treated refined coal, after research has shown that some power plants using the fuel produced surging amounts of mercury and smog instead of cutting pollution."