Europe Lodges WTO Complaint Against Canada Over Renewable Energy

Bloomberg
The European Union lodged a complaint at the World Trade Organization against Canada over subsidies the province of Ontario gives to renewable-energy producers that use domestic technology.
Under Ontario’s feed-in tariff program, created by the province’s Green Energy Act, above-market rates are paid to producers of renewable energy provided it is generated with a certain percentage of Canadian-made equipment. The act aims to help Ontario meet its goal of shutting all its coal-power generators by 2014.
A provision of the program that began in October 2009 requires projects to use goods and labor from Ontario for as much as 60 percent of supply costs, depending on the type of renewable-energy source.
“This is in clear breach of the WTO rules that prohibit linking subsidies to the use of domestic products,” the European Commission said today in an e-mailed statement from Brussels. The Ontario Power Authority “has set conditions that favor domestic products and services.”