Going it alone on climate change A new challenge to WTO subsidies disciplines: are subsidies in support of emissions reductions schemes permissible under the WTO

January 2012
World Trade Review;Jan2012, Vol. 11 Issue 1, p27
Academic Journal
This paper examines the specific ways in which the provision of emissions permits by governments in carbon trading schemes, interacts with, and challenges, the disciplines on subsidies in the WTO Agreement on Subsidies and Countervailing Measures. It will argue that the case of emissions permits gives rise to two key challenges. First, it highlights the need for a resolution on the issue of the characterization of intangible goods under the SCM Agreement, and the importance this has for the calculation of benefit and hence the correct application of SCM disciplines. Secondly, when applied to emissions permits, the SCM Agreement produces a result that heavily favours the complaining Member at the expense of ‘distributive justice’. This is compounded by the current lack of directly applicable exceptions for subsidies directed at legitimate public policy goals. Fundamentally, this will affect the potential cost and continuing viability of national emissions trading schemes and further challenge the environmental credentials of the WTO.


Related Articles

  • MONETARY CARBON VALUES IN POLICY APPRAISAL: AN OVERVIEW OF CURRENT PRACTICE AND KEY ISSUES - ENVIRONMENT WORKING PAPER No. 92. Smith, Stephen; Braathen, Nils Axel // OECD Environment Working Papers;9/23/2015, Issue 92, preceding p2 

    Cost-benefit analyses and other quantitative appraisals are used in many countries to support decisionmaking in different areas of public policy, including many investment projects in sectors such as transport and energy. These decisions can have significant effects - either negative or positive...

  • Obscenity of carbon trading. Smith, Kevin // Chain Reaction;Aug2007, Issue 100, p31 

    A reprint of the article "Obscenity of Carbon Trading," by Kevin Smith, which appeared on the BBC Science and Nature Web site is discussed. It discusses the author's views on the environmental and moral issues of carbon trading. He believes that effective action on climate change involves...

  • Research on Chinese Emissions Trading System Pilots. Yang Su; Zhao Tian // Advanced Materials Research;2014, Vol. 1073-1076, p2779 

    Climate change has become one of the most concerned problems throughout the world. Since carbon trading is an essential way to reduce the emission, China has conducted seven ETS pilots and the size of market as well as the level of activity is in the world-leading status. Now Chinese carbon...

  • An Analysis of the Leading Climate Change Bills in the U.S. Senate. Richards, Kenneth R.; Richards, Stephanie Hayes // Environmental Law Reporter: News & Analysis;Jun2008, Vol. 38 Issue 6, p10388 

    The two leading broad-based climate change bills in the U.S. Senate are America's Climate Security Act of 2007 (Warner-Lieberman Bill) and the Low Carbon Economy Act of 2007 (Bingaman-Specter Bill). In this Article, Prof. Kenneth R. Richards and Stephanie Hayes Richards examine the most...

  • EDITORS' NOTE. Lopes, Paulo A.; Sky, Melissa Blue // Sustainable Development Law & Policy;Winter2011, Vol. 11 Issue 2, p1 

    An introduction is presented which mentions articles within the issue on proposed climate change mitigation policies in countries such as China and the U.S., carbon markets, and reducing emissions from deforestation and forest degradation (REDD) programs.

  • Trucks taking on climate change. Jones, Peter // Manufacturers' Monthly;Oct2008, p12 

    The article reports on the mandatory reporting for emissions trading and greenhouse gas (GHG) emissions introduced by the Australian government on some truck companies. The initiative was undertaken to address the reduce GHG emissions and environmental effects of climate change. It relates that...

  • POLÍTICAS DE MITIGAÇÃO DE MUDANÇAS CLIMÁTICAS E SEUS EFEITOS SOBRE O BRASIL. França, Franklin Pedro; Gurgel, Angelo Costa // Brazilian Review of Economics & Agribusiness / Revista de Econom;mai-ago2012, Vol. 10 Issue 2, p131 

    The study estimates the impacts of climate change policies that may be adopted by US, European Union (EU) and Brazil in a time frame of 20 years. We use a general equilibrium model of the world economy, built to project greenhouse gas (GHG) emissions and simulate policies to reduce such...

  • Postponing emission reductions from 2020 to 2030 increases climate risks and long-term costs. den Elzen, Michel G. J.; van Vuuren, Detlef P.; van Vliet, Jasper // Climatic Change;Mar2010, Vol. 99 Issue 1/2, p313 

    Substantially postponing the emission reductions, compared to the ranges indicated in IPCC’s recent assessment for 2020 as required for meeting the longterm 2°C target, increases the risk of exceeding this target. The costs of a delay strategy are lower in the short term, but leads to...

  • Changes to CRC scheme welcomed by business.  // ENDS (Environmental Data Services);Oct2009, Issue 417, p5 

    The article deals with the final changes made by the British government to its Carbon Reduction Commitment (CRC). It has been renamed as CRC Energy Efficiency Scheme and will begin in April 2010. The British Department of Energy and Climate Change (DECC) has made several concessions to business....


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics