Canada - Certain Measures Affecting the Renewable Energy Generation Sector / Canada - Measures Relating to the Feed-in Tariff Program (WT/DS412, WT/DS426): Reports of the Appellate Body

Summary

INTRODUCTION

Canada, Japan, and the European Union each appeals certain issues of law and legal interpretations developed in the Panel Reports, Canada – Certain Measures Affecting the Renewable Energy Generation Sector and Canada – Measures Relating to the Feed-in Tariff Program (Panel Reports). The Panel was established to consider complaints by Japan and the European Union8 (the complainants) with respect to certain domestic content requirements in the feedin tariff programme (FIT Programme) established by the Canadian Province of Ontario.

The measures at issue in these disputes, as identified by the Panel, are the following:

a. the FIT Programme, as evidenced by the following measures:

i. the Electricity Act of 1998, as amended, including in particular Part II – Independent Electricity System Operator, Part II.1 – Ontario Power Authority, and Part II.2 – Management of Electricity Supply, Capacity and Demand, including in particular Section 25.35 – Feed-in tariff program;

ii. an Act to enact the Green Energy Act of 2009 and to build a green economy, to repeal the Energy Conservation Leadership Act of 2006 and the Energy Efficiency Act and to amend other statutes (Green Energy and Green Economy Act of 2009), including in particular Schedule B, amending the Electricity Act of 1998;

iii. an Act to amend the Electricity Act of 1998 and the Ontario Energy Board Act of 1998 and to make consequential amendments to other Acts (Electricity Restructuring Act of 2004), including in particular Schedule A, Sections 29- 32, enacting Part II.1 of the Electricity Act of 1998, and Sections 33-38, enacting Part II.2 of the Electricity Act of 1998, and Schedule B, Sections 17-18, enacting Sections 78.3-78.4 of the Ontario Energy Board Act of 1998;

iv. Ontario Regulation 578/05, made under the Ontario Energy Board Act of 1998, entitled “Prescribed Contracts Re Sections 78.3 and 78.4 of the Act”;

v. the Independent Electricity System Operator (IESO) Market Manual, including in particular Part 5.5 – Physical Markets Settlement Statements;