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44 results

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  • Reconciling the Climate/Industrial Interplay of CBAMs: What Role for the WTO?

  • Part of
  • Ilaria Espa
  • Journal:
    AJIL Unbound / Volume 116 / 2022
    Published online by Cambridge University Press:
    18 July 2022, pp. 208-212
    • Article
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  • The European Union (EU) recently proposed the introduction of a carbon border adjustment mechanism (CBAM) and suddenly transformed into reality an almost two decade-long debate over the hypothetical use of CBAMs as antidotes to uneven carbon prices. The European Commission presented the scheme as a climate measure aimed at reducing the risk of carbon leakage for energy intensive and trade-exposed industries facing the cost of increased climate ambition.1 At the same time, however, it listed the mechanism among the instruments that support a “competitive [green] transition” for EU businesses in the context of the new industrial strategy supporting the EU Green Deal.2 This ambiguity risks undermining the credibility of the scheme as a legitimate climate response unless it can be shown that the equalization of carbon costs (i.e., the fair competition/industrial component) is instrumental to achieving higher emission reduction levels than could have been achieved otherwise (i.e., the carbon leakage/climate component). While the exact balance between climate- and industrial-informed features is ultimately an issue of design, this essay argues that making the scheme (as) compatible (as possible) with the rules of the World Trade Organization (WTO) improves its environmental effectiveness and accordingly contributes to reconciling the CBAM with its stated climate purpose.

  • 3 - Natural Resources Management in the Sustainable Development Goals Era

  • from Part I - Penetration and Diffusion of the Sustainable Development Goals
  • Edited by Cosimo Beverelli, Jürgen Kurtz, European University Institute, Florence, Damian Raess
  • Book:
    International Trade, Investment, and the Sustainable Development Goals
    Published online:
    18 September 2020
    Print publication:
    01 October 2020, pp 76-108

  • Summary

    This chapter assesses whether the law and practice of the WTO have been sufficiently aligning with the international law principle of sustainable use of natural resources as enshrined in the Sustainable Development Goals (SDGs) and recognized in the International Law Association New Delhi Declaration. Focusing on how relevant WTO rules and exceptions have been interpreted in recent WTO cases revolving around the notion of conservation under Article XX(g) General Agreement on Tariffs and Trade (GATT) and Article 2 Technical Barriers to Trade, it finds that such provisions have been interpreted in a way that preserves sufficient flexibility for members to pursue sustainable natural resources management goals through trade-related policy instruments (even when they are unilateral measures with extraterritorial reach). Interestingly enough from a sustainable natural resources management standpoint, the chapter stresses that WTO dispute settlement bodies have not only consistently broadened the reach of the GATT conservation exception in line with the principle of sustainable use of natural resources, but also significantly preserved the ‘environmental’ (i.e. conservation-related) connotation of sustainable natural resources management.

  • The Analogue Method Comes Unfastened – The Awkward Space between Market and Non-Market Economies in EC–Fasteners (Article 21.5)

  • ILARIA ESPA, PHILIP I. LEVY
  • Journal:
    World Trade Review / Volume 17 / Issue 2 / April 2018
    Published online by Cambridge University Press:
    23 April 2018, pp. 313-334
    Print publication:
    April 2018

  • The compliance Appellate Body decision marks the latest twist in the long-running EC–Fasteners dispute. The question before the AB is whether the European Union complied with earlier rulings on its anti-dumping procedures. Broadly, the AB found that the EU had not, generally ruling in favor of the People's Republic of China. In the process, the AB raised interesting questions about what it means to be a Non-Market Economy (NME) in the WTO. While NME status has traditionally led to large dumping margins, the AB approach in this case may lessen the consequences for China. Among other things, the case raises the interesting and important question of how pervasive the taint of NME status may be when calculating margins. By allowing for adjustments of certain costs, the AB seems to constrain the more draconian analogue country methodology of calculation.

International Trade in Sustainable Electricity
  • Regulatory Challenges in International Economic Law
  • Edited by Thomas Cottier, Ilaria Espa
  • Published online:
    01 June 2017
    Print publication:
    01 June 2017
  • Cross-border trade in electricity is rapidly expanding as a result of technical innovations, economic and geopolitical developments, and the ongoing decarbonisation of the electricity sector in response to climate change. The expansion of electricity networks and the integration of increasing shares of renewable energy (RE) electricity into the grid have made long-distance electricity flows both feasible and desirable. Drawing on the work of experts in trade and energy law and policy, and offering novel, multidisciplinary perspectives on the rapidly evolving landscape shaping international trade in electricity, this book examines the most important challenges - technical, economic, legal and policy-related - posed by long-distance and sustainable electricity trade. The book explores the regulatory implications of the policy instruments aimed at supporting RE electricity and considers how best to promote greater overall coherence in international electricity governance.

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