This study examines the WTO ruling on Ontario's Green Energy Act, its implications, and options moving forward. CCPA trade policy analyst Scott Sinclair finds that the recent World Trade Organization ruling—that the Ontario Green Energy Act’s local content requirements conflict with international trade rules—is based on an overly restrictive interpretation. The analysis explores options for Ontario to comply with the ruling while preserving the vital job creation component of the Act. The study also stresses that it is essential for Ontario to fully safeguard its existing policy flexibility over renewable energy procurement under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and future trade agreements.
Saving the Green Economy
Ontario’s Green Energy Act and the WTO
November 21, 2013