Climate, energy and trade in EU–China relations: synergy or conflict?

This article aims at assessing the state of Sino–European energy relations in light of the common challenges they face in the areas of energy security and sustainability, while providing some insight on whether international trade rules are well-equipped to encourage and facilitate cooperation, on the one hand, and defuse potential conflicts, on the other, between China and the EU. Section 1 introduces the topic. Section 2 gives an account of the climate and energy profiles of both China and the EU with a view to highlighting their shared interests in the field and the potential for synergies in the areas of energy security and energy sustainability. Section 3 illustrates how energy cooperation between China and the EU has evolved over the years and identifies its main strengths and weaknesses. Section 4 discusses the role that international trade rules can play in fostering China–EU energy cooperation and provides a case study on the how World Trade Organization (WTO) rules on export restrictions could enhance energy security. This is followed by some conclusions on the potential of the WTO system to advance Sino–EU energy relations and, more generally, global energy governance

Switzerland-based private sustainability standards and WTO law

This report examines the applicability of World Trade Organization (WTO) rules to Switzerland-based private sustainability standards and provides recommendations for a Swiss negotiating position on green labelling

Export Restrictions in relation to Extractive Industries

A new E15 Think Piece by Ilaria Espa produced under the E15Initiative (E15). Implemented jointly by the International Centre for Trade and Sustainable Development (ICTSD) and the World Economic Forum, the E15 convenes world-class experts and institutions to generate strategic analysis and recommendations for government, business and civil society geared towards strengthening the global trade system. This paper considers concrete policy options to better regulate the use of export restrictions in relation to extractive industries. It briefly describes recent trends in the use of export restrictions on mineral and energy resources. It gives an account of the main shortcomings in the WTO legal treatment of export restrictions. It accordingly discusses possible avenues for reforming existing WTO disciplines in the interest of secure access to supplies, while still taking into account the need to preserve some policy space for host countries to use such measures as legitimate development tools

The EU Proposal for a Carbon Border Adjustment Mechanism (CBAM): An Analysis under WTO and Climate Change Law

This paper scrutinizes the European Union’s proposal for a carbon border adjustment mechanism (CBAM) under the rules of the World Trade Organization (WTO) and climate change law. It first examines the logic behind the CBAM as a border carbon adjustment measure, having due regard to the complex interplay between its stated carbon leakage rationale and its fair competition mechanics. It then dissects the main anticipated features of the CBAM and discusses how they may fare under both WTO law and climate change law. Finally, it identifies the most critical proposed design elements from a legal perspective and discusses possible alternatives or variations that could better align the CBAM with its climate change purpose

Subsidies, Clean Energy, and Climate Change

Estimates show that fossil fuel subsidies average USD 400–600 billion annually worldwide while renewable energy (RE) subsidies amounted to USD 66 billion in 2010 and are predicted to rise to USD 250 billion annually by 2035. Domestic political rationales for energy subsidies include promoting innovation, job creation and economic growth, energy security, and independence. Energy subsidies may also serve social and environmental goals. Whether and to what extent subsidies are effective to achieve these goals or instead lead to market distortions is a matter of much debate and the trade effects of energy subsidies are complex. This paper offers an overview of the types of energy subsidies that are used in the conventional and renewable energy sectors, and their relationship with climate change, in particular greenhouse gas emissions. While the WTO’s Agreement on Subsidies and Countervailing Measures (ASCM) is mostly concerned with harm to competitors, this paper considers the extent to which the Agreement could also discipline subsidies that cause harm to the environment as a global common. Beyond the existing legal framework, this paper surveys a number of alternatives for improving the ability of subsidies disciplines to internalize climate change costs of energy production and consumption. One option is a new multilateral agreement on subsidies or trade remedies (with an appropriate carve-out in the WTO regime to allow for it if such an agreement is concluded outside it). Alternatively, climate change-related subsidies could be included as part of another multilateral regime or as part of regional agreements. A third approach would be to incorporate rules on energy subsidies in sectorial agreements, including a Sustainable Energy Trade Agreement such as has been proposed in other ICTSD studies

Renewable Electricity Tax Exemptions and Trade Remedies under International Law: An Assessment of Policy Space under WTO Law, the Swiss-EU FTA, and EU

A study prepared for the Swiss Federal Office of Energy (SFOE) The problem of increasing imports of subsidised renewable electricity from neighboring countries and Member States of the EU, undermining level playing fields for traditional hydropower in Switzerland, can be addressed by means of preferential taxation of electricity produced by means of renewable energy. Both under WTO law and the rules of the 1972 Free Trade Agreement, distinctions may be drawn on the basis of non-product related production and process methods, provided the same rules apply to domestic and imported electricity produced with similar methods. Differential taxation can be implemented on the basis of certificates of origin (CO) which need to be made available alike to domestic and foreign producers. A privilege exclusively granted to domestic producers cannot be lawfully sustained. Also, quantitative restrictions of imports cannot be properly justified. The study recommends adopting a system comparable to the UK model of renewable electricity exemption scheme, in place since 2001. It has not been challenged under EU law or under WTO law. To the extent that considerations of industrial policy dominate the motivation, rather than the promotion of green electricity, measures could be adopted on the basis of countervailing duties, offsetting foreign subsidies granted. Also, recourse to safeguard measures, albeit limited in time, can be contemplated. As Switzerland has little experience in taking recourse to trade remedies, a proper methodology taking into account WTO law would need to be developed and communicated in advance. Finally, efforts should be made to address the issue in negotiations with the European Union and Member States. Both unilateral measures relating to differential taxation as well as trade remedies may be used as an argument to bring about a settlement with exporting countries of subsidised electricity

Enforcement & Law-Making of the EU Trade Policy

The digital open access volume is the first publication realized within the Jean Monnet Module “Reforming the Global Economic Governance: The EU for SDGs in International Economic Law (Re-Globe)”, coordinated by Professor Elisa Baroncini. It presents the approach of the European Union to the reform processes for new substantive and procedural rules for the governance of the global economy, and the EU articulated and innovative strategy to contribute, through its trade policy, to the achievement of the Sustainable Development Goals (SDGs) of the UN 2030 Agenda. The e-book therefore considers the role of the EU within the multilateral and regional dispute settlement mechanisms of International Economic Law, the participation of civil society in the definition, implementation and enforcement of the EU trade policy tools, and the promotion of the principle of sustainable development through the new generation of EU Free Trade Agreements (FTAs) and the proposed EU autonomous instruments like the Carbon Border Adjustment Mechanism (CBAM). The volume devotes particular attention to the EU / China relations and the highly interesting case law developed within the EU FTAs systems dealing with trade and sustainability complaints

Wege in die Ernährungszukunft der Schweiz - Leitfaden zu den grössten Hebeln und politischen Pfaden für ein nachhaltiges Ernährungssystem

Aus wissenschaftlicher Sicht ist klar: Unser Ernährungssystem ist nicht nachhaltig. Um unsere Lebens- und Wirtschaftsgrundlagen zu erhalten, braucht es eine Neuausrichtung über die gesamte Wertschöpfungskette. Diese ist gleichzeitig ein Schlüssel zur Erreichung der Agenda 2030 für nachhaltige Entwicklung. SDSN Schweiz hat das wissenschaftliche Gremium Ernährungszukunft Schweiz initiiert, um einen Wegweiser zu entwickeln. Er soll es der Schweiz erlauben, Chancen rechtzeitig anzupacken und unkontrollierbare Kostenfolgen zu vermeiden. Das wissenschaftliche Gremium hat international wegweisende Pionierarbeit geleistet. In einem interdisziplinären wissenschaftlichen Prozess wurde zum ersten Mal für ein Land ein umfassender Handlungspfad zur Neuausrichtung des Ernährungssystems im Einklang mit den Zielen für nachhaltige Entwicklung ausgearbeitet. Die beteiligten Forschenden schaffen damit eine wichtige Grundlage für die weitere politische Diskussion in der Schweiz und international