The European Union (EU) has announced on 11 August 2011 that it has requested WTO consultations with Canada concerning the RES policy of Ontario , one of the Canadian provinces, that the EU deems to be contrary to international tade rules . Japan had previously initiated a WTO dispute settlement procedure on the same legislation on 13 September 2010, followed by the establishment of a panel on 20 July 2011 . On the American continent, a power company located in Texas, Mesa Power, has challenged the same measure under the rules of the North American Free Trade Agreement (NAFTA) (see text of the Notice of Intent before NAFTA here).
The EU argues that Ontario's RES policy provides subsidies to producers of renewable energy but make the support conditional to the use of domestic technology. The Ontario's legislation at stake is the Ontario Green Energy and Economy Act (OGEA) . In its press release, the EU Commission describes the legislation as such:
" The OGEA empow...
This blog is meant as a personal notebook on recent legal developments in the sector of sustainable energy.