Renewable Energy and Trade: Interpreting against Fragmentation

Abstract

SummarySeveral disputes relating to renewable energy are underway at the World Trade Organization (WTO). The Appellate Body has released its first decision on this subject on the feed-in tariff for electricity in the province of Ontario. The disputes raise once again the issue of the relationship between international trade law and environmental protection. Evolving WTO jurisprudence should be able to resolve many of the difficulties, although the crucial problem of the treatment of production and processing methods remains obscure after the Canada – Renewable Energy decision. Questions of fundamental theory lie close to the surface of these debates. The recent expansion in the number of international regimes and tribunals highlights the importance of approaches to interpretation in public international law. As countries negotiate new treaties to address the needs of global society, potential conflicts and overlapping provisions are likely to appear. Differences of opinion about reliance on non-WTO treaties in the WTO dispute settlement system illustrate problems that can be anticipated in several fora. To achieve workable solutions for renewable energy disputes and many others, interpretation should promote the harmonious integration of obligations, in accordance with the intent of the negotiators.