Countervailing Duties and Subsidies for Climate Mitigation: What Is, and What Is Not, WTO-Compatible?

Countervailing Duties and Subsidies for Climate Mitigation: What Is, and What Is Not, WTO-Compatible?

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Description

Subsidies are regulated by the WTO through the Subsidies and Countervailing Measures Agreement, which lays down rules for which subsidies are not permitted and recourse if they are used. One possible argument is that a state’s omission to internalize the negative externality of climate change through domestic regulation can count as a subsidy, although the viability of this line of reasoning has been called into question. The allocation of free allowances to protect domestic industry from the competitiveness concerns of leakage raises subsidy issues, possibly even contravening WTO rules, and the same applies to certain efforts to promote renewable energy use.

Source Publication

Climate Finance: Regulatory and Funding Strategies for Climate Change and Global Development

Source Editors/Authors

Richard B. Stewart, Benedict Kingsbury, Bryce Rudyk

Publication Date

2009

Countervailing Duties and Subsidies for Climate Mitigation: What Is, and What Is Not, WTO-Compatible?

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