National Treatment Principle In The Light Of The India Solar Panels Dispute Case
- IJLLR Journal
- Jul 27
- 2 min read
Viraj Singh Katoch, BBA LLB (Hons.), Symbiosis Law School, Pune
Introduction
With every year passing by, climate change is considered as the rising concern for the entire world. Due to an increase in temperature, adverse environmental effects have been caused which led to detrimental effects and challenges for the market, leading to a wide search for alternate sources of energy. As per several research done globally, majority of Carbon-Dioxide emissions are caused by electricity generation through fossil fuels, and to combat such emission, alternate sources of fuels via renewable energy is prominent and is upcoming due to its abundant properties. Regardless of that, there are challenges that are still challenges faced while using renewable sources of energy such as- High Capital Cost and less return on investment as compared to fossil fuels.
To combat this Governments across the globe have resorted to grant renewable energy subsidies to several companies to build such an energy sector that implements and uses that technology to reduce carbon emissions. Domestic Content Requirements (DCR’s) are provisions that help in development of the industrial sectors of a nation, and in this case, those of the renewable energy sector.
In regards to subsidiaries that are granted by governments to the companies in their nations, the WTO regulates this very activity by the Agreement on Subsidies and Countervailing Measures (ACSM) which overlooks such activities.
In the Solar Panels Dispute Case, India had decided to give renewable energy subsidies to certain renewable energy industries for the manufacturer of solar panels under the Jawaharlal Nehru National Solar Mission (JNNSM). The United States of America on the other hand, was aggrieved by this policy decision of India and the favouritism it showed towards its domestic industries, thereby harming the scope of success of US based industries manufacturing solar panels. The same was then challenged by USA in WTO under ASCM.
