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August 2011

The Allocation of Emission Allowances Free of Charge

Legal and Economic Considerations

This paper questions whether the practice of allocating emission allowances free of charge may constitute a subsidy and thereby distort international trade. From a legal perspective, it is clear that free allowances could constitute a subsidy under WTO law.

© 2011 International Centre for Trade and Sustainable Development (ICTSD). This work is licensed under the Creative Commons Attribution-Noncommercial-No-Derivative Works 3.0 License.

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Author:

Ingrid Jegou, Luca Rubini

Series:

Issue:

18

Publisher: