Green Protectionism in the European Union

Green Protectionism in the European Union: How Europe’s Biofuels Policy and the Renewable Energy Directive Violate WTO Commitments, European Centre for International Political Economy (ECIPE)

  • “This paper examines the trade-policy consequences of current approaches to biofuels. The paper is not concerned with possible adverse environmental consequences of policy aimed at switching to biofuels. Such consequences have been reported. This paper, however, is addressing possible trade-policy implications of the already established policy. At the centre of the paper are current measures used by the European Union to stimulate domestic biofuels production and keep foreign competitors away from the European market. These measures are comprised of tariffs and subsidies. A new measure is seriously about to manifest itself in policy: biofuels standards that are discriminatory in intent and effect. The next chapter offers a broader introduction to the nexus of trade and climate change. Subsequent chapters will examine in detail the EU’s policy towards biofuels and how they have developed till now. Then follows a chapter on standards and their effects on trade. The paper ends with conclusions and recommendations for policy makers – in Europe and beyond – that are interested in ensuring Europe’s policies are consistent with its WTO obligations.”
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