WTO implications of reporting measures for tar sands under the Fuel Quality Directive
To measure progress toward the FQD GHG emissions reduction target, the European Commission is designing reporting measures which will outline default values for the lifecycle GHG emissions of transport fuels derived from different sources, including fuels produced from unconventional feedstocks such as tar sands. Several questions have arisen whether the reporting measures and the inclusion of a default value for tar sands comply with World Trade Organization (WTO) rules and jurisprudence, namely the General Agreement on Tariffs and Trade (GATT) and case law.
T&E and other NGOs commissioned Defense Terre to analyse this issue and provide legal advice on the WTO implications of reporting measures for tar sands under the FQD. The legal analysis concludes that the European Union has a strong likelihood of success on the merits in a WTO challenge against its reporting measures setting out a default value for GHG emissions from tar sands. Download the report to read more about the legal arguments.