WTO rules against Canada in renewable energy case

The World Trade Organisation (WTO) has ruled against Canada in a case that centres around promotion of renewable energy.

Japan and the European Union brought the case over a scheme intended to promote renewable energy in the province of Ontario.
Ontario’s government offered above-market prices for electricity supplied by renewable energy companies but only offered the premium to firms who bought most of their equipment locally.

The WTO found that Ontario’s incentives were illegal because they discriminated against foreign firms.

“Today’s ruling is good news for everyone caring about clean energy and the environment: it has been made clear that use of quality, cost-effective technologies should not be hampered by protectionist measures,” EU trade spokesman John Clancy said in a statement.

“The EU supports the promotion of renewable energy but considers this must be done in a manner consistent with international trade rules.”

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