Publication

This paper discusses carbon and energy taxes, subsidies, energy efficiency standards, eco-labels and government procurement policies and explores the potential interaction between these domestic climate policies and WTO rules. It highlights their potential conflicts and argues that such conflict can be avoided or at least minimized if WTO rules are carefully scrutinized at the time Annex 1 governments undertake measures to achieve the required reductions in emissions. It then suggests an early process of pursuing consultation between WTO members and the parties to the climate change convention, and points to the need of further exploring ways to enhance synergies between the trade and climate regime.