Re-exploration of the Dual Attributes of Environmental Protection and International Trade in Electricity Price Subsidies for Biomass Power Generation: A Chinese Perspective

Abstract

Biomass power generation is an important utilization method of renewable energy, and its electricity price subsidy has dual attributes: environmental protection and international trade. For the sustainable development of human society and for the country to compete for the right to develop, subsidies are necessary. To make up for the costs caused by externalities, subsidies have their legitimacy, which constitutes the environmental protection attribute of subsidies. Under the WTO legal framework, electricity price subsidies may constitute subsidies, prohibited subsidies, and actionable subsidies under the SCM Agreement, which is a concrete manifestation of its international trade attribute. It is difficult to have the best of both worlds in environmental protection and international trade. To reconcile the contradiction between the two, we should seek both inward and outward solutions: internally, strengthen policy compliance, promote the healthy development of the industry, and realize marketization as soon as possible; externally, seek institutional support at the level of international law, and set exemptions for environmental subsidies through multilateral negotiations, ministerial meetings, etc. It is necessary to seize the opportunity of energy transformation, including biomass power generation, as soon as possible with the encouragement of the “Two Carbon-related” Goals.