Conflicts of the SCM Agreement with LDCs Interests over Renewable Energy Incentives: Proposals for Reform. (May 2015)

• Record Type: Journal Article
• Authors: Ahmad, Zaker
• Is Part Of: Foreign trade review. Volume 50:Number 2(2015:May)
• Page Start: 118
• Page End: 134
• Publication Date: 2015-05
• Subjects: F1 -- O1 -- O2; LDC -- green energy -- energy subsidies -- SCM -- WTO; 382.0954005
• DOI: 10.1177/0015732515572059
• Languages: English
• ISSNs: 0015-7325

Abstract

This article argues that climate change effects have sharpened the least developed countries' (LDCs) need to move towards a green economy. As respective markets tend to grow, the LDCs would benefit if the production of and research in renewable energy (RE) especially wind and solar energy equipments and technologies are subsidized globally. Despite the existence of the policy room in other related international regulatory framework, the Subsidies Agreement of the World Trade Organization makes incentivizing RE industries significantly difficult, if not impossible. It has been recommended that law reform, by way of incorporating special carve-outs in the Subsidies and Countervailing Measures Agreement, is the path that would assist LDCs in their smoother transition to a green economy.