As reported by CBC News, Ontario has lost its appeal at the WTO over challenges to its Green Energy Act. Ontario’s controversial renewable energy subsidy program, which the Ontario Auditor General previously reported to have costs Ontarians $4.4 billion in additional energy costs, was ruled to be in violation of international trade laws in the recent WTO ruling:
The World Trade Organization’s appeal body has upheld complaints from the EU and Japan that Ontario’s program to promote green energy use violates international trade rules.
The WTO’s appellate body confirmed the Ontario program to encourage the development of wind and solar power discriminates against foreign firms because Ontario’s Green Energy Act mandates that a certain percentage of solar and wind components be domestically made.
EU and Japan say the province’s “feed-in-tariff” program for its energy grid discriminates against foreign component manufacturers by declaring a minimum percentage of renewable energy goods and services be provided by Ontario-based companies.
According to the Green Energy Act, wind and solar projects in Ontario must have a domestic content requirement of up to 60 per cent or they won’t be eligible for contracts.
