Will the “Friends of Climate” emerge in the WTO? The prospects of applying the “Fisheries Subsidies” model to energy subsidies
Notwithstanding the potential virtues of subsidies in certain circumstances, this form of government intervention in markets mainly through financial or fiscal means may have huge negative impacts in addition to the effects on efficiency and trade. Fish stock depletion and man-made global warming are two examples of cases in which a subsidy could have detrimental effects on the environment. The fisheries subsidies case has found its way to the WTO in a constructive and promising manner. Following similar approaches to address the issue of energy subsidies, however, may pose challenges of the highest magnitude, as will be discussed in this paper.