Conflicts of the SCM Agreement with LDC Interests Over Renewable Energy Incentives: Proposals for Reform

Abstract

This article argues that climate change effects have sharpened the Least Developed Countries' need to move towards a green economy. As respective markets tend to grow, the LDCs would benefit if production of, and research in renewable energy, especially wind, and solar energy equipments and technologies are subsidized globally. Despite of existing policy room in other related international regulatory framework, the SCM Agreement of the WTO makes incentivizing renewable energy industries significantly difficult, if not impossible. It has been recommended that law reform, by way of incorporating special carve outs in the SCM Agreement is the path that would assist LDCs in a smoother transition to a greener future.

Keywords: renewable energy, subsidies, subsidies agreement, renewable energy incentive, SCM, WTO, LDC and renewable energy, renewable energy trade