Ontario set to comply with WTO energy ruling

The Canadian province of Ontario will comply with the ruling by the World Trade Organization to change its controversial Green Energy Act, Bob Chiarelli, the province’s energy minister said last Wednesday. The revised legislation is expected to be implemented by early next year.

The existing feed-in tariff (FIT) programme requires participating electricity generators to source up to 60 per cent of their equipment in Ontario if they wish to be eligible for generous subsidies. This clause was found to be incompatible with Canada’s WTO commitments. Canada had appealed against the WTO’s initial ruling this past February, but the WTO ruled against the appeal earlier this month.

The first complaints of the legislation were brought to the WTO by Japan in 2010. Since then, both Japan and the European Union have argued that Ontario’s incentives for green energy were illegal because they discriminated against foreign firms.

In an attempt to dispel concerns over potential adverse effects of the change on Ontario’s burgeoning green energy manufacturing sector, Chiarelli said that Ontario will continue to build a “robust renewable energy sector that creates tens of thousands of good jobs”.

ICTSD reporting; “Ontario to Change Green Energy Law after WTO Ruling,” THE CANADIAN PRESS, 30 May 2013; “Ontario Loses Final WTO Appeal on Green Energy Act,” THE GLOBE AND MAIL, 6 May 2013; “Ontario to Change Local Content Rules on Green Energy to Comply with WTO Ruling,” FORT FRANCES TIMES ONLINE, 29 May 2013.

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Date Posted

May 31 2013