Japan takes Ontario to WTO over Green Jobs...

We might have to re-think some of our energy policies...

In what may be an ominous shot across the bow for green jobs advocates, Japan on September 13 submitted a complaint to the World Trade Organization alleging that a Canadian renewable energy law violates WTO non-discrimination rules. [1] At issue are a set of domestic content requirements built into Ontario’s landmark green energy law, [2] which are designed to guarantee that local producers – and local jobs –supply a minimum percentage of the technology used to meet the province’s ambitious goals for renewable energy generation. [3] While Japan’s “Request for Consultation” with Canada does not formally initiate a case before the WTO’s Dispute Settlement Body (DSB), it nevertheless sets the stage for a high-stakes showdown between the two countries, with potentially global repercussions for energy and industrial policy linking renewable power to high tech employment opportunities.

On the one hand, Ontario hopes to spur investment in homegrown clean energy jobs by guaranteeing favorable feed-in tariff (FIT) rates for power generators who purchase solar panels and other equipment produced locally. [4] On the other hand, Japan – already home to many of the world’s leading solar PV producers – seeks to maintain its sizable lead in renewables manufacturing.