Resolving the Problems of the WTO Regarding the Renewable Energy Subsides through the European Union regulations

Document Type : Research Paper

Authors

1 Associate Professor, Faculty of Law, University of Shahid Beheshti. Tehran. Iran

2 PhD in Petroleum Law at Shahid Beheshti University, Tehran, Iran

Abstract

The infinity of renewable energy and its role in providing and ameliorating environmental affairs are but some of the principal rationales behind increasing the investment in the renewable energies. The promotion of investment and costly technology in this industry calls for government subsidies. In spite of the felt necessity of the mentioned measures, the WTO legal system has recognized them as actionable and even sometimes prohibited these subsidies on renewable energy, which indeed have been a major step in the local development and promotion of this industry. As a consequence of such policies, the cases and claimes of Japan and EU against Canada as well as USA against India have been proposed as dispute settlement body. The present study, through the analysis of WTO regulations, is aimed at recognizing the most pivotal challenges of renewable energy subsides; by explicating the structure and policies of the EU regulations, it is also aimed at answering this question: are the EU regulations are harmonious enough with renewable energy to be resorted to for resolving the WTO challenges? Based on the results of the present study, with the inspiration from EU expedient regulations and by putting an end to the win-win relationship between the environmental policies and international trade laws, WTO shall deem the renewable energy subsides under coverage of non-actionable and non-prohibited subsides. It shall do so, however, not unconditionally but by accounting for some specific and tangible criteria. Furthermore, WTO should prevent the deviations of the subsidies by utilizing the balance and proportion testing methods.

Keywords

References

  1. 1. فارسی

    1. جهانی‌پور، محمدرضا و میرمحمدی، سید مصطفی(1396)، «اصول توسعۀ پایدار در رویۀ دیوان بین‌المللی دادگستری و دادگاه بین‌المللی حقوق دریاها»، مطالعات حقوق تطبیقی، دورۀ 8، ش 2.
    2. علاء‌الدینی، سید عباس(1397)، «نظام حقوق حاکم بر قیمت‌شکنی در ایران و سازمان جهانی تجارت»، مطالعات حقوق تطبیقی، دورۀ 9، ش 2.

     

    2. انگلیسی

    A) Books & Articles

    1. Asmelash, Henok. (2015), "Energy Subsidies and WTO Dispute Settlement: Why Only Renewable Energy Subsidies Are Challenged", Journal of International Economic Law, Vol. 18(2), p. 261–285.
    2. Backlund, Tove. (2016), the legal framework for energy provisions in the European Union, Master thesis. Faculty of Law. University of Turku, p.1-75.
    3. Charnovitz, Steve and Fischer, Carolyn. (2015), "RenewableEnergy: Implications for WTO Law on Green and Not-So-Green Subsidies". World Trade Review, vol. 14(2), 2.p.177-210.
    4. Cosbey, Aaron and Marvoridis. C, Petros. (2014), "A Turquoise Mess: Green Subsidies, Blue Industrial Policy and Renewable Energy: The Case for Redrafting the Subsidies Agreement of the WTO". Journal of international economic law, vol.17.p.1-58.
    5. Cottier, Thomas. (2014), "Renewable Energy and WTO Law: More Policy Space or Enhanced Disciplines, Renewable Energy". Law & Policy Review, vol. 5(1), p.40-51.
    6. Emanuelsson, Sara. (2015), Feed in Tariffs for Renewable Energy and The WTO Agreement on Subsides and Countervailing Measures Are Feed-in Tariffs Specific Subsides ? , Master Thesis. Department of law Goteborgs University, p. 1-72.
    7. Häggqvist, Ake. (2017), The EU State Aid Prohibition and Taxation– The Expanding Scope of Art. 107 TFEU JAEM03, Master Thesis. European Business Law. Lund University.p.1-64.

    10. Howse, Robert. (2010), "Climate Change Mitigation Subsidies and the WTO Legal Framework: A Policy Analysis", Winnipeg, Manitoba: International Institute for Sustainable Development. Vol.27, p. 1-33.

    11. Johnston, Angus. (2014), "The impact of the new EU Commission guidelines on State aid for environmental protection and energy on the promotion of renewable energies", EU renewable energy law, legal challenges and new perspective, Norway. University of Oslo, p. 14-55.

    12. Kahl, Harmut. (2014), "Trade law constraints to regional renewable energy support schemes",  Renewable Energy Law in the EU Legal Perspectives on Bottom-up Approaches, UK. Northampton, EdwardbElgar, p. 35-52.

    13. Lakatos, Andr. (2004), "Overview of the Regulatory Environment for Trade in Electricity". In: Electricity Trade in Europe. Edited by Janusz Bielecki and Melaku Geboye Desta. Kluwer law, p. 119-154.

    14. Lee, Kenina. (2011), "Inherent Conflict between WTO Law and Sustainable Future - Evaluating the Consistency of Canadian and Chinese Renewable Energy Policies with WTO Trade Law". Int'l Envtl. Law .vol.24.p. 57-91.

    15. Leena Penttinen, Sirja. (2014), "The Essent Case, the one about free movement, economic justifications and the increasing role of the State". In: EU renewable energy law, legal challenges and new perspective.Norway. University of Oslo, p.109-134.

    16. Paolo, D. Farah and Elena, CIMA. (2015), the World Trade Organization, Renewable Energy Subsidies, and the Case of Feed-in Tariffs: Time for Reform toward Sustainable Development? Geo. Int'l Envtl. L. Rev, vol. 27, p. 515-540.

    17. Parker, Leslie. (2016), "International Law and the Renewable Energy Sector". Oxford Handbooks Online, p. 357-392.

    18. Rubini, Luca. (2012), "Ain’T Wastin’ Time no More: Subsides for Renewable Energy, the SCM Agreement, Policy Space, and Law Reform". Journal of International Economic Law. Vol. 15, p. 525-579.

    19. Scholz, Lydia and Bremen, Hochschule. (2014), "The dialogue between free movement of goods and the national law of renewable energies". In: EU renewable energy law, legal challenges and new perspective. Edited byJuris trond solvang.Norway. University of Oslo, p. 89-108.

    20. Vivasvan, Bansal and Chaitanya, deshpande. (2017), "The India-Solar Cells Dispute: Renewable Energy Subsidies under World Trade Law and the Need for Environmental Exceptions". Nujs law review.vol.2, p. 209-244.

    21. Waltman Esq, Rick A. (2016), "Renewable Energy Development for WTO Member". Nations,Santa Clara Journal of International Law.Vol.14, p. 543-566.

    22. Ziaee Bigdeli, Sadeq. (2014), "Clash of Rationalities: Revisiting the Trade and Environment Debate in Light of WTO Dispute over Green Industrial Policy". Trade, Law and Development. Vol. 6, p. 177-209.

    23. Ziaee Bigdeli, Sadeq. (2009), "Incentive Schemes to Promote Renewable Energy and the WTO Law of Subsidies".In: International Trade Regulation and the Mitigation of Climate Change, 9780521766197. New york , Cambridge University Press, p. 155-192.

    24. Ziaee Bigdeli, Sadeq. (2011), "Resurrecting the Dead? The Expired Non-Actionable Subsidies and the Lingering Question of 'Green Space". Manchester Journal of International Economic Law.Vol.8, p .2-37.

     

    B) Websites

    25. «General Block Exemption Regulation», March 2016, In Address: https://ec.europa.eu/competition/state_aid/legislation/practical_guide_gber_en.pdf.

    26. «The Treaty on the Functioning of the European Union», 2012, In Address:https://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:12012E/TXT:EN:PDF.

    27. «Court of Justice of the European Union in case c-305/17», 2018. In Address:  https://curia.europa.eu/jcms/upload/docs/application/pdf/2018-12/cp180189en.pdf. «Agreement on Subsidies and Countervailing Measures», 1995. In Address: https://www.wto.org/english/docs_e/legal_e/24-scm.pdf.

Comparative Law Review
Volume 11, Issue 2
Autumn & Winter
October 2020
Pages 763-783

Files

Share

How to cite

Statistics