Part IV Setting up the International Mitigation Regime: Contents and Consequences, Ch.15 National Measures and WTO Consistency—Border Measures and other Instruments to Prevent Carbon Leakage and Level the Carbon Playing Field

Subject(s):

Climate change — Environmental disputes — Pollution — World Trade Organization (WTO) — Arbitration

This chapter analyses the consistency of the measures used by the states and the World Trade Organization (WTO) in facing carbon leakage. As a response to the wave of migration of private CO2 emitters to developing states with lax emission reduction measures, numerous developing states passed measures such as border tax adjustments (BTAs), border adjustment measures linked to the existence of an emissions trading scheme, climate change-related technical regulations, and green energy domestic support policies such as feed-in tariffs. The chapter also discusses the reasons for national climate measures that potentially end in conflict with WTO rules. In this context, the chapter discusses how these measures are motivated by carbon leakage, loss of competitiveness and energy security concerns, or a combination of all three.