Abstract
This contribution discusses WTO subsidies disciplines in the context of the energy sector. After
laying out the relevant disciplines, it will discuss the paradox of WTO law with respect to
subsidies towards fossil fuels vis-à-vis those towards renewable energy. It is clear that subsidies
on clean energy production and consumption are needed to correct market failures and to
promote legitimate policy goals such as contributing to sustainable development through the
scale up of clean energy, including expanding its trade. However, experience has shown that
support schemes for clean energy by their nature and design make them sensitive to WTO
dispute settlement. Much more harmful subsidies on fossil fuels, on the other hand, are
omnipresent yet often escape being addressed in the multilateral trading system. The
contribution will draw upon the examples of ‘energy dual pricing’ and Feed-In Tariffs (FITs).
It will argue that while it may be difficult to tackle fossil fuels subsidies in the WTO forum,
more efforts are needed to (re)legalise environmental subsidies.
laying out the relevant disciplines, it will discuss the paradox of WTO law with respect to
subsidies towards fossil fuels vis-à-vis those towards renewable energy. It is clear that subsidies
on clean energy production and consumption are needed to correct market failures and to
promote legitimate policy goals such as contributing to sustainable development through the
scale up of clean energy, including expanding its trade. However, experience has shown that
support schemes for clean energy by their nature and design make them sensitive to WTO
dispute settlement. Much more harmful subsidies on fossil fuels, on the other hand, are
omnipresent yet often escape being addressed in the multilateral trading system. The
contribution will draw upon the examples of ‘energy dual pricing’ and Feed-In Tariffs (FITs).
It will argue that while it may be difficult to tackle fossil fuels subsidies in the WTO forum,
more efforts are needed to (re)legalise environmental subsidies.
| Original language | English |
|---|---|
| Title of host publication | L Hancher, A De Hauteclocque and FM Salerno (eds), State Aid in the Energy Sector, Florence School of Regulation (FSR) |
| Publisher | Hart Publishing |
| Number of pages | 25 |
| Publication status | Published - 8 Feb 2018 |