EU AND THE UK REACH AGREEMENT ON WTO’S GREEN ENERGY DISPUTE

On March 28, 2022, the European Union (EU) requested the World Trade Organization (WTO) to hold consultations on the UK’s ‘Contracts for Difference’ (CfD) scheme. CfD is currently the UK’s main mechanism for promoting low-carbon energy generation and consists of securing stable revenues for low-carbon energy generators. Details on the policy are available here.

More specifically, the EU questioned if possible local content requirements in the CfD contracts signed by the UK would be in violation of WTO rules. However, in response, the UK assured there were no local content requirements for projects to be approved, and that any data regarding the level of local content would be used for informational purposes only. The EU’s request for consultations is available here.

The MPA team monitors the progress of trade disputes within the WTO and remains at your disposal for any clarifications.