The WTO Panel Report on US-Safeguard Measure on PV Products: A Decisive Victory for the Fight Against Climate Change?

Abstract

AbstractUsing solar energy, a clean and renewable energy source, is significant to reducing global greenhouse gas emissions. Some disputes revolving around green incentive policies regarding clean energy resources were brought to the World Trade Organisation’s (WTO) dispute settlement system a few years ago. WTO panels faulted members’ green incentive policies in Canada-Renewable Energy and India-Solar Cells because the relevant procurement constituted a WTO-inconsistent domestic content requirement. Although these rulings ensure the functioning of a liberal market of green products, they have a side effect on the long-term enforcement of global climate policies. By closing the door on green incentive policies for domestic industries, WTO panels have indirectly supported the monopoly of the international market of green products by a few giant producers. This monopoly has significantly harmed the development of environmental industries in many countries and discouraged the relevant investment and innovation. These consequences might be underestimated or ignored by panels but have slowed down reducing greenhouse gas emissions. Given this, it is essential to know how governments can promote clean and renewable energy in a manner consistent with WTO law. The US-Safeguard Measure on PV Products panel may have given a clear response that members should use safeguard measures to protect their environmental industries against unfair competition. Whereas many people hail the panel’s decision, it is noteworthy that safeguard measures have limitations to promote the sustainable development of clean energy. It is necessary to deeply analyse the value and impact of this new WTO panel report. This chapter aims to shed light on this aspect. It is structured as follows. Section 1 introduces the relevance of the WTO dispute settlement system to the development of clean energy and the combat of climate change and describes the structure of this chapter. Section 2 reviews the WTO jurisprudence. After that, Sect. 3 sets forth the positive and negative impacts of the US-Safeguard Measure on PV Products on WTO members’ national strategies for promoting the use of clean energy. Notably, this discussion focuses on the role of WTO panels in diversifying the supply chain of PV products and preventing pollution throughout the life cycle of PV products. Then, Sect. 4 suggests that a more comprehensive analytical framework that balances various sustainability elements is desirable for combatting climate change. Finally, this chapter ends up with a brief conclusion.