WTO: Renewable Energy Arbitration

The WTO Dispute Settlement Mechanism has established a Panel to arbitrate in the Japan vs. Canada case on measures applied to Canada's renewable energy sector. It will examine the case "Canada - Certain Measures Affecting the Renewable Energy Generation Sector" to determine whether Ontario's feed-in-tariff programme violates WTO law when providing guaranteed long-term pricing for the output of renewable energy generation facilities that source up to 60% of their inputs from Ontario. Domestic content requirements are not permitted under WTO law, although exceptions may be accepted for environmental purposes, if certain specific conditions are met.