Climate Change and International Law. Exploring the Linkages Between Human Rights, Environment, Trade and Investment

Mapping the relevant principles and norms of international law, the paper discusses scientific evidence and identifies current legal foundations of climate change mitigation adaptation and communication in international environmental law, human rights protection and international trade regulation in WTO law. It briefly discusses the evolution and architecture of relevant multilateral environmental agreements, in particular the UN Framework Convention on Climate Change. It discusses the potential role of human rights in identifying pertinent goals and values of mitigation and adaptation and eventually turns to principles and rules of international trade regulation and investment protection which are likely to be of crucial importance should the advent of a new multilateral agreement fail to materialize. The economic and legal relevance of rules on tariffs, border tax adjustment and subsidies, services and intellectual property and investment law are discussed in relation to the production, supply and use of energy. Moreover, lessons from trade negotiations may be drawn for negotiations of future environmental instruments. The paper offers a survey of the main interacting areas of public international law and discusses the intricate interaction of all these components informing climate change mitigation, adaptation and communication in international law in light of an emerging doctrine of multilayered governance. It seeks to contribute to greater coherence of what today is highly fragmented and rarely discussed in an overall context. The paper argues that trade regulation will be of critical importance in assessing domestic policies and potential trade remedies offer powerful incentives for all nations alike to participate in a multilateral framework defining appropriate goals and principles.

The Integration of Electricity from Renewable Energy Sources in the European Union Electricity Market – The case for “Smart Grids”

The power sector is to play a central role in a low carbon economy. In all the decarbonisation scenarios of the European Union renewable energy sources (RES) will be a crucial part of the solution. Current grids constitute however major bottlenecks for the future expansion of RES. Recognising the need for a modernisation of its grids, the European Union has called for the creation of a "smart supergrid" interconnecting European grids at the continental level and making them "intelligent" through the addition of information and communication technology (ICT). To implement its agenda the EU has taken a leading role in coordinating research efforts and creating a common legislative framework for the necessary modernisation of Europe’s grids. This paper intends to give both an overview and a critical appraisal of the measures taken so far by the European Union to "transform" the grids into the backbone of a decarbonised electricity system. It suggests that if competition is to play a significant role in the deployment of smart grids, the current regulatory paradigm will have to be fundamentally reassessed

Border tax adjustments: Can energy and carbon taxes be adjusted at the border?

Will die Schweiz mit unilateralen energie- und klimapolitischen Massnahmen ambitionierte Ziele verfolgen, dann erfahren energieintensive Sektoren Nachteile im internationalen Wett- bewerb. Produktionsverlagerungen und „carbon leakage“ sind die Folgen, was nicht im Sinne der Schweizer Wirtschaft und der globalen Klimaziele ist. Mit Grenzausgleichsmassnahmen (BAM) kann die Schweiz ihre energieintensiven Betriebe nicht vor internationalen Wettbe- werbsnachteilen schützen. Weiter kommt hinzu, dass die Einführung von BAM aus rechtli- cher Sicht „riskant“ ist und bei einem Schweizer Alleingang mit hohen Vollzugshürden ge- rechnet werden muss. Für die Schweiz macht eine Einführung von BAM nur im Rahmen ei- ner grösseren Klimakoalition Sinn (bspw. zusammen mit der EU). Alternativen zu BAM sind die einfacher und autonom umsetzbaren Ausnahmeregelungen für energieintensive Betriebe oder Output-based-allocation-Systeme.

Imaging the Heliosphere using neutral Atoms from Solar Wind Energy down to 15 eV

We study the spatial and temporal distribution of hydrogen energetic neutral atoms (ENAs) from the heliosheath observed with the IBEX-Lo sensor of the Interstellar Boundary EXplorer (IBEX) from solar wind energies down to the lowest available energy (15 eV). All available IBEX-Lo data from 2009 January until 2013 June were included. The sky regions imaged when the spacecraft was outside of Earth's magnetosphere and when the Earth was moving toward the direction of observation offer a sufficient signal-to-noise ratio even at very low energies. We find that the ENA ribbon—a 20° wide region of high ENA intensities—is most prominent at solar wind energies whereas it fades at lower energies. The maximum emission in the ribbon is located near the poles for 2 keV and closer to the ecliptic plane for energies below 1 keV. This shift is an evidence that the ENA ribbon originates from the solar wind. Below 0.1 keV, the ribbon can no longer be identified against the globally distributed ENA signal. The ENA measurements in the downwind direction are affected by magnetospheric contamination below 0.5 keV, but a region of very low ENA intensities can be identified from 0.1 keV to 2 keV. The energy spectra of heliospheric ENAs follow a uniform power law down to 0.1 keV. Below this energy, they seem to become flatter, which is consistent with predictions. Due to the subtraction of local background, the ENA intensities measured with IBEX agree with the upper limit derived from Lyα observations.

Hydrogen atom in space with a compactified extra dimension and potential defined by Gauss' law

We investigate the consequences of one extra spatial dimension for the stability and energy spectrum of the non-relativistic hydrogen atom with a potential defined by Gauss' law, i.e. proportional to 1 /| x | 2 . The additional spatial dimension is considered to be either infinite or curled-up in a circle of radius R. In both cases, the energy spectrum is bounded from below for charges smaller than the same critical value and unbounded from below otherwise. As a consequence of compactification, negative energy eigenstates appear: if R is smaller than a quarter of the Bohr radius, the corresponding Hamiltonian possesses an infinite number of bound states with minimal energy extending at least to the ground state of the hydrogen atom.

Energy Export Restrictions in the WTO Between Resources Nationalism and Sustainable Development

This chapter aims at contributing to the trade and energy debate by focusing on the specific issue of export restrictions. It starts from the premise that a balanced and efficient regulation of export barriers in the energy sector would contribute to tackle emerging energy concerns such as energy security and the elimination of fossil fuel subsidies in light of the challenge of climate change mitigation. It assesses the adequacy of existing WTO rules on export restric­tions and accordingly identifies the main gaps and inconsistencies inherent in the current disciplines from an energy-specific perspective. Finally, it discusses the merits of an energy-specific approach to advance existing disciplines in the most deficient area of export duties based on the systematisation of the Russian ‘model’. Such approach could raise the overall level of commitments in the energy sector while still allowing for the systemic applicability of GATT environmental exceptions in a manner consistent with the principle of sus­tainable development recognised in the Preamble of the WTO Agreement.

Energy subsidies from a climate and trade perspective

A short paper for dissemination based on a research piece published by the E15Initiative: Subsidies, Clean Energy, and Climate Change, February 2015. Implemented jointly by ICTSD and the World Economic Forum, the E15Initiative convenes world-class experts and institutions to generate strategic analysis and recommendations for government, business, and civil society geared towards strengthening the global trade and investment system. The paper is also published in Spanish and Portuguese.

Subsidies, Clean Energy, and Climate Change

Estimates show that fossil fuel subsidies average USD 400–600 billion annually worldwide while renewable energy (RE) subsidies amounted to USD 66 billion in 2010 and are predicted to rise to USD 250 billion annually by 2035. Domestic political rationales for energy subsidies include promoting innovation, job creation and economic growth, energy security, and independence. Energy subsidies may also serve social and environmental goals. Whether and to what extent subsidies are effective to achieve these goals or instead lead to market distortions is a matter of much debate and the trade effects of energy subsidies are complex. This paper offers an overview of the types of energy subsidies that are used in the conventional and renewable energy sectors, and their relationship with climate change, in particular greenhouse gas emissions. While the WTO’s Agreement on Subsidies and Countervailing Measures (ASCM) is mostly concerned with harm to competitors, this paper considers the extent to which the Agreement could also discipline subsidies that cause harm to the environment as a global common. Beyond the existing legal framework, this paper surveys a number of alternatives for improving the ability of subsidies disciplines to internalize climate change costs of energy production and consumption. One option is a new multilateral agreement on subsidies or trade remedies (with an appropriate carve-out in the WTO regime to allow for it if such an agreement is concluded outside it). Alternatively, climate change-related subsidies could be included as part of another multilateral regime or as part of regional agreements. A third approach would be to incorporate rules on energy subsidies in sectorial agreements, including a Sustainable Energy Trade Agreement such as has been proposed in other ICTSD studies.

Negotiating an Energy Deal under TTIP: Drivers and Impediments to U.S. Shale Exports to Europe

The problem of global security of energy supply is growing in importance. TTIP negotiations represent an opportunity to improve energy security in Europe and negotiate a legal framework for bilateral trade in energy, which could serve as a model for future negotiations at a multilateral level. This paper explores some of the thorniest legal, geopolitical, and economic issues that need to be taken up by TTIP negotiators for the promotion of a secure and sustainable trade in energy between the United States and European Union. It gives an account of the most recent developments in the TTIP negotiations on energy and examines the link between a possible legal framework for energy trade under TTIP and other energy-related regional and international fora. The paper critically assesses the negotiating positions of the European Union and the United States in light of their reciprocal energy profiles and needs. It offers an overview of the critical items most likely to be on top of the TTIP agenda on energy based on a comparative analysis of energy provisions in E.U. and U.S. legislation and in light of the both parties’ interests. Finally, it discusses the main driving forces and inhibiting factors capable of facilitating or rather impeding a successful conclusion of an energy trade deal between the United States and the European Union.

Fair Access to Energy Resources, Market Transfers and Climate Change in the WTO

This paper addresses the issues of dual pricing and export restrictions in the energy sector, stressing the comparability of their economic and climate change impacts. It assesses whether WTO disciplines relevant and applicable to such practices are well-equipped to ensure fair access to energy resources. It finds that relevant GATT disciplines are overall deficient in the case of dual pricing and export taxes, while the landscape of WTO-plus obligations generally consisting of a network of narrowly tailored commitments. It discusses possible avenues to address such practices under the ASCM to the extent that they distort domestic energy prices and subsidize consumption of cheap fossil fuels