Treatment and Monitoring of the EU and USA Emission Trading Systems Under the Agreement on Subsidies

Clinic: Graduate Institute, Spring 2010

Authors: Ilias Pnevmonidis, Megan Quek.


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This memorandum analyzes climate change legislation of the EU and the US and found that they contain provisions that may constitute subsidies and be challenged as the WTO under the SCM Agreement, specifically provisions regarding emission allowances and rebate programs. Regarding reforms to the WTO framework, it is suggested that WTO Members may create environmentally friendly provisions under the SCM Agreement rather than a new multilateral and plurilateral environmental and trade agreement.

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