The European Union has requested a World Trade Organization (WTO) investigation into Ontario’s renewable-energy legislation. The EU believes that the Ontario Green Energy and Economy Act (OGEA) is in breach of Canada’s WTO obligations, claiming that it is illegal to condition access to a subsidy to the use of domestic products.
The OGEA provides for the development of programmes to encourage the use of renewable energy and it allows for its purchase at an above-market price, which constitutes a subsidy. However, access to this programme is conditioned by the use of domestic products and services. Read more here.
Date: August 14, 2011