Investment in Renewable Energy and World Trade Law

By PETER KAYODE ONIEMOLA(University of Aberdeen)

Outline• Introduction• Drives for Renewable Energy Investment• WTO Rules• WTO Agreements and Renewable Energy -TRIPS -GATT -TBT• Conclusions

Introduction

• The push towards investment in renewable energy has been:

-Energy Security -Climate Change -Development• World Trade Rules in renewable energy

World Trade Rules

• Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)

• General Agreement on Tariffs and Trade (GATT)

• Agreement on Technical Barriers to Trade (TBT)

Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)• Provision of Incentives for transfer of Technology• Enhancement of Intellectual Property Rights• Promotion of Technological Innovation• TRIPS is Relevant in Renewable Energy Technology Investment

General Agreement on Tariffs and Trade (GATT)

• Governs all trade and commits countries to a liberalized trade regime through the lowering of tariffs with each round of international trade negotiations.

• GATT may influence the nature of taxes and subsidies for renewable energy products.

• Utilised in the promotion of environmentally sound technology, which include renewable energy technology.

Agreement on Technical Barriers to Trade (TBT)• TBT guides the application of technical

regulations and standards in order to avoid unnecessary obstruc tions to trade.

• Regulations for the promotion of renewable energy setting standards may conflict with TBT.

Conclusions

• Trade is an important channel for the diffusion of renewable energy resources and technologies.

• World trade rules are significant in the international trade and investment in renewable energy sources and technologies.

• Trade measures promoting renewable energy products can contribute to increased access in energy.

• A need for WTO to design rules specifically addressing the investment in renewable energy.