Local Content Requirements in Renewable Energy Schemes-Government Procurement or a Violation of International Obligations?

摘要

Numerous states have adopted renewable energy schemes aimed at incentivising investments in renewable energy generation capacity that contain local content requirements as an eligibility criterion to obtain support, such as a feed-in tariff. However, these requirements may violate the international obligations of states under international trade and investment agreements. This article analyses how local content requirements relate to provisions of several Agreements of the World Trade Organization, Ch.11 of the North American Free Trade Agreement and the Energy Charter Treaty. In particular, it will address the possibilities and difficulties for private investors to challenge local content requirements through international investment agreements.