Kateryna Holzer

Special Agreements and Energy: Filling the Gaps

This chapter examines the patchwork of regulatory responses in the field of trade and investment to the current energy challenges and reflects on the recent developments in relevant international fora in terms of their ability to take the regulatory framework for energy a step further in serving the needs of sustainable energy access for all.

Negotiating 21st Century Rules on Energy: What Is at Stake for the European Union, the United States and the BRICS?

In the context of the Transatlantic Trade and Investment Partnership (TTIP), the European Union (EU) has taken the lead in promoting the inclusion of a specific chapter on energy trade and investment in order to enhance energy security and promote renewable energy. Irrespective of the success of the TTIP negotiations, the EU proposal can contribute to developing multilateral rules on energy trade and investment. This is especially important given the increased number of energy disputes filed by the EU and the United States against other leading energy market players, including the BRICS. This article provides a normative analysis of the new rules proposed by the EU and reflects on potential responses of BRICS energy regulators. It argues that, while these rules are unlikely to immediately affect BRICS energy practices, they may eventually be ‘imported’ in BRICS domestic jurisdictions in order to promote renewable energy and attract investment in energy infrastructure.

Promoting Green Electricity through Differentiated Electricity Tax Schemes

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.

Regulatory Aspects and Public International Law Issues of the Construction of Cross-Border Electricity Networks

The role of government and regulation in the construction of regional interconnections and enabling cross-border trade in electricity over long distances is crucial. Only integrated electricity markets and well-designed regulatory frameworks can deliver and maintain cost-effective electricity systems. Interconnected electricity systems, in their turn, can contribute to the objectives of low carbon economy, as cross-border electricity networks can integrate large-scale renewable energy sources. This paper explores the challenges related to the regulatory environment for the construction of cross-border electricity transmission links. It looks at regulatory aspects and public international law issues of cross-border energy trade and investment and international and regional cooperation related to the construction of cross-border electricity networks. First, it examines the right to construct transmission under the law of the World Trade Organization (WTO), focusing on the transit provisions of Article V of the General Agreement on Tariffs and Trade (GATT) and related obligations under the Agreement on Subsidies and Countervailing Measures (ASCM). Second, it discusses rights and obligations arising from the participation at energy-specific international treaties, such as the non-impediment obligation under Article 7 of the Energy Charter Treaty. Third, it looks at the potential of creating legal guarantees for investors under regional trade and energy-specific agreements. The paper draws on existing case law and the experience with electricity market regulations and energy investment regimes in the European Union.

TTIP and Climate Change – How real are Race to the Bottom Concerns?

Abstract This paper examines concerns about the impact that TTIP could have on existing and future climate policies and laws from the inclusion of provisions on investment protection including investor-to-State dispute settlement (ISDS), the reduction of non-tariff barriers and the introduction of rules for trade in energy and raw materials. It argues that from an environmental perspective, ISDS should not necessarily be seen as a regime that goes against the defence of the environment or prevention of climate change. Although it might be used to challenge policies of an EU home State that increase levels of environmental protection, it can also be used to contest changes in an EU home State’s environmental policies that would reduce the protection of the environment, if foreign investment is affected. To a large extent, this also holds true for other areas of TTIP negotiations. While the achievement of a balance between rules that promote trade and those that maintain policy space for governments to respond to environmental concerns has to be closely monitored, benefits for climate could be seized from harmonisation of carbon laws at the level of the strictest regulations of two parties, provisions that promote trade in low carbon technologies and renewable energy and bilateral cooperation on climate change.

Renewable Electricity Tax Exemptions and Trade Remedies under International Law: An Assessment of Policy Space under WTO Law, the Swiss-EU FTA, and EU

A study prepared for the Swiss Federal Office of Energy (SFOE) The problem of increasing imports of subsidised renewable electricity from neighboring countries and Member States of the EU, undermining level playing fields for traditional hydropower in Switzerland, can be addressed by means of preferential taxation of electricity produced by means of renewable energy. Both under WTO law and the rules of the 1972 Free Trade Agreement, distinctions may be drawn on the basis of non-product related production and process methods, provided the same rules apply to domestic and imported electricity produced with similar methods. Differential taxation can be implemented on the basis of certificates of origin (CO) which need to be made available alike to domestic and foreign producers. A privilege exclusively granted to domestic producers cannot be lawfully sustained. Also, quantitative restrictions of imports cannot be properly justified. The study recommends adopting a system comparable to the UK model of renewable electricity exemption scheme, in place since 2001. It has not been challenged under EU law or under WTO law. To the extent that considerations of industrial policy dominate the motivation, rather than the promotion of green electricity, measures could be adopted on the basis of countervailing duties, offsetting foreign subsidies granted. Also, recourse to safeguard measures, albeit limited in time, can be contemplated. As Switzerland has little experience in taking recourse to trade remedies, a proper methodology taking into account WTO law would need to be developed and communicated in advance. Finally, efforts should be made to address the issue in negotiations with the European Union and Member States. Both unilateral measures relating to differential taxation as well as trade remedies may be used as an argument to bring about a settlement with exporting countries of subsidised electricity.

Gutachten zu den ökologischen Anforderungen an das Inverkehrbringen von Produkten erstattet dem Bundesamt für Umwelt BAFU

Das schweizerische Verfassungsrecht belasst dem Gesetzgeber einen hinreichenden Spielraum, Massnahmen bezuglich der Inverkehrsetzung von importierten Produkten nach Massgabe von Anforderungen an die Produktionsbedingungen im Exportland (Production and Process Methods, PPMs) im Bereich der untersuchten Produkte (Palmol, Soya, biogene Treibstoffe, Textilien, Baumwolle) im Rahmen eines Bundesgesetzes zu erlassen. Der Gestaltungsspielaum bemisst sich im einzelnen nach den detaillierten Bestimmungen des WTO Rechts. Dabei steht die Forderung freiwilliger Labels und von internationalen Standards fur Best Practices im Vordergrund. Es schliesst indessen auch einseitige Import- restriktionen auf Grund von PPMs nicht aus, soweit vorgangig durchgefuhrte Verhand- lungen mit den Exportstaaten nicht zielfuhrend sind und freiwillige Massnahmen nicht genugen. Das kann vor allem im Rohstoffhandel und im Konzernhandel (intrafirm trade) zutreffen. Die Regelungen unterliegen einer Verhaltnismassigkeitsprufung und sie durfen sich nicht zum Schutze der einheimischen Industrie auswirken. Das GATT-recht erlaubt auch zollrechtliche Massnahmen als Mittel und Anreiz zur Forderung von Best Practices im Exportstaat. Das Freihandelsabkommen Schweiz-EU folgt den gleichen Grundsatzen, schliesst indessen zollrechtliche Massnahmen bezuglich der erfassten Produkte aus. Das Bundesgesetz uber die Beseitigung technischer Handelshemmnisse verlangt die Anpassung an EU-rechtliche PPM Standards, soweit diese bestehen. Damit werden auch Spannungen im Rahmen des Freihandelsabkommens vermieden. Das THG erlaubt aber auch die ein- seitige Entwicklung von Best Practices und damit die Schaffung von Anreizen fur die Ent- wicklung internationaler Standards. Das Cassis-de-Dijon Prinzip findet vorliegend keine unmittelbare Anwendung. Die hier behandelten Importregelungen beschranken sich auf die Rohstoffe und die unmittelbar daraus gewonnenen Basisprodukte. Sie lassen sich nicht auf verarbeitete Produkte ubertragen. Diese konnen nur im Rahmen einer internationalen Harmonisierung miteinbezogen werden, welche alle Stufen der Verarbeitungsskette zu erfassen vermogen. Dies kann im Alleingang nicht erreicht werden.