Renewable Energy and Article III: 8(a) of the GATT: Reassessing the Environment-Trade Conflict in Light of the ‘Next Generation’ Cases

Abstract

Renewable energy has emerged as a popular way to balance environmental concerns with the duty of states to provide their citizens with access to electricity. states have attempted to improve their domestic capabilities in relation to the generation of renewable energy to achieve this. A popular method to attain this goal has been to allow foreign investment in the energy sector, but with an important caveat: that of a mandatory minimum requirement of local content. This “green industrial policy” often falls foul of countries’ trade obligations under the WTO regime and has led to states filing disputes challenging these measures before the WTO. This article seeks to highlight how these cases have been adjudicated. It will focus on how these cases are significantly different from the “classic cases” on trade and environment. The analytical emphasis of this article is on Article III:8(a) of the GATT 1994, how the WTO has adjudicated cases relating to this provision and how it ought to take the debate forward.