Bigdeli, Sadeq Z. --- "Feed-in-tariffs and the WTO regulation of subsidies—a moment of progressive adjudication in Canada–Renewable Energy" [2016] ELECD 1465; in Delimatsis, Panagiotis (ed), "Research Handbook on Climate Change and Trade Law" (Edward Elgar Publishing, 2016) 119

Book Title: Research Handbook on Climate Change and Trade Law

Editor(s): Delimatsis, Panagiotis

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781783478439

Section: Chapter 6

Section Title: Feed-in-tariffs and the WTO regulation of subsidies—a moment of progressive adjudication in Canada–Renewable Energy

Author(s): Bigdeli, Sadeq Z.

Number of pages: 29

Abstract/Description:

Feed-in-tariffs (FITs) have emerged as a global model for Renewable Energy (RE) promotion. Currently more than 61 countries and 26 regional jurisdictions have enacted FIT laws, which offer a fixed price for a guaranteed duration to RE generators. This creates certainty for investors, thereby reducing project development risks and often reducing financing costs. These instruments are the favourite RE deployment policy not only among environmental non-governmental organizations (NGOs) but also prominent scientists. Despite their popularity, the success of the FIT model in generating intended results entirely depends on a number of factors to be considered in its regulatory architecture, such as setting specific installation or generation targets, and training and education as ‘two crucial components for building know-how to increase the pace of learning-by-doing and innovation’. The question whether there would be additional environmental benefits in combining FIT schemes with a localization (i.e. industrial policy) element, is the most controversial aspect of FIT policy. To be sure, localization of RE energy production, one way or another, has been historically present in major RE deployment programmes worldwide. For instance, Denmark and Germany, as first movers in the wind industry, provided ‘soft loans’ for wind projects that had significant local content. They also created customs duties that favoured the import of components over fully assembled wind turbines.