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http://hdl.handle.net/1814/12782
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| Title: | Final Instance: World Trade Organization - Unilateral Trade Measures in EU Climate Change Legislation |
| Authors: | AHNER, Nicole |
| Keywords: | Carbon leakage
trade restrictions
climate change
EU energy policy
border measures |
| Issue Date: | 2009 |
| Series/Report no.: | EUI RSCAS
2009/58
Loyola de Palacio Programme on Energy Policy |
| Abstract: | Can the European Union (EU) introduce trade restrictive border measures under the auspices of
environmental protection, whose purpose is at least inter alia to ‘level the competitive playing field’
for the European carbon-intensive industries? Should the World Trade Organization (WTO) dispute
settlement bodies be the final instance for deciding the legality of European climate change legislation
measures?
Europe is tightening its climate change policy, which inevitably increases costs for European
producers. Global deviation in greenhouse gas emission reduction efforts has raised concerns about
carbon leakage and deterioration in the competitiveness of European industries. To cope with these
threats, the introduction of trade measures linked to the content of other countries’ environmental
policy has been suggested. The revised Directive 2009/29/EC on the EU Emissions Trading Scheme
(ETS) accordingly lead the way forward with regard to implementing special provisions such as free
allocation of allowances or a “carbon equalization system”. Constituting a restriction of free trade, the
announced measures are bound to clash with the multilateral trading rules of the WTO. This article
checks the conformity of the anticipated trade measures in EU climate change legislation with the
international obligations of the Community under the WTO, namely their compatibility with the
General Agreement of Tariffs and Trade (GATT) 1994. |
| URI: | http://hdl.handle.net/1814/12782 |
| ISSN: | 1028-3625 |
| Appears in Collections: | RSCAS Working Papers
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