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Renewable energy tax incentives and WTO law: irreconcilably incompatible? : an examination of the WTO-consistency of direct corporate tax incentives for the development of renewable energy

“…Article 3(10) UNFCCC states that Annex I countries should take the lead in combating climate change. 35 This is important since the level of carbon dioxide emissions of each country directly correlates to the level of industrial development, currently and historically. It was agreed that developed countries are largely responsible for the majority of greenhouse gas emissions currently and also from a historical point of view.…”

“…Although, in light of Kyoto Protocol obligations, environmental policies play an important role in developing tax treatment, tax incentives aiming to influence companies to perform well with respect to protection of the environment may also distort competition or even constitute protectionist policies, favouring national over imported goods. 35 The environmental protection justification of tax incentives may not be sufficient to allow such policies to discriminate between various electricity generators, whether between national operators or operators competing across borders.…”

“…Ireland notified the extension of the aid in September 2003, requesting approval for extension until 31 December 2006. 35 The Commission once again decided not to raise objections. In this decision by the Commission, and by virtue of the four requests for additional information by the Commission to make an informed decision on the compatibility of this aid with the State aid rules, the aid was described and assessed in detail.…”

“…112 Included in the list of eligible investments are 'projects in the field of sustainable energy'. 113 The conditions attached to this incentive are also that the investment must be in new assets situated in the Netherlands for the purpose of carrying out the green project in the Netherlands. 114 Furthermore, the capital of the project should be at least €22,689 and the benefit of the project to the environment should be immediate.…”

“…For competition in the electricity sector and liberalisation of the electricity market, the generation and supply levels should at least be severed from the natural monopolies of transmission and distribution and opened to competition. 113 In Europe the liberalisation of generation and supply were primarily addressed by the First Electricity Directive in 1996. 114 The liberalisation of the electricity market in this way also came about in an unbalanced manner in which transmission and distribution have remained 'natural monopolies' to a large extent, whereas generation and supply have been liberalised.…”