Renewable Energy Disputes in the World Trade Organization

Oil, Gas and Energy Law Journal, Vol. 13, Issue 3, pp. 1-51, 2015

52 Pages Posted: 20 Mar 2015

See all articles by Rafael Leal-Arcas

Rafael Leal-Arcas

Queen Mary University of London - School of Law

Andrew Filis

previously associated to QMUL

Date Written: March 18, 2015

Abstract

This article analyzes renewable energy disputes in the World Trade Organization (WTO), explores the specific WTO norms that have been, and are likely to be, engaged by trade-distortive measures that WTO Members may seek to argue have been taken to promote renewables, and advocates implementing stronger governance of energy trade and provides an analysis of the WTO’s treatment of renewable energy. It also discusses the impact of subsidies on different forms of energy and whether feed-in tariffs count as subsidies in the WTO context. Our conclusion is that the main obstacles to the scale-up and take-up of renewable energy are not normative/institutional per se. Rather, they are economic. The only systemic ‘obstacle’ that the WTO presents is its requirement that measures not be disguised mercantilism and that they be applied even-handedly. The WTO system, as it stands, could, and does, accommodate bona fide non-discriminatory measures that promote the scale-up and take-up of renewable energy. After all, we see that it tolerates conventional energy subsidies, which certainly are not predicated on the general exceptions to WTO rules or other dispensations, as these appear in the covered agreements. That said, while the system, as it stands, is considerably flexible towards externalities such as environmental protection objectives, further trade liberalization remains the system’s principal objective.

Keywords: governance of renewable energy; WTO and renewable energy; environmental protection objectives and the WTO; energy trade; renewable subsidies

JEL Classification: K33

Suggested Citation

Leal-Arcas, Rafael and Filis, Andrew, Renewable Energy Disputes in the World Trade Organization (March 18, 2015). Oil, Gas and Energy Law Journal, Vol. 13, Issue 3, pp. 1-51, 2015. Available at SSRN: https://ssrn.com/abstract=2580337

Rafael Leal-Arcas (Contact Author)

Queen Mary University of London - School of Law ( email )

67-69
Lincoln's Inn Fields
Holborn, London WC2A 3JB
United Kingdom

HOME PAGE: http://www.ccls.qmul.ac.uk/staff/lealarcas.html

Andrew Filis

previously associated to QMUL ( email )

London, London
United Kingdom

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