EU Initiates WTO Dispute Over UK Low Carbon Energy Subsidies

The European Union has initiated a dispute with the United Kingdom due to subsidies London is offering to promote low carbon energy generation projects, the World Trade Organisation said on Wednesday.

The WTO said the EU alleges that the United Kingdom is acting inconsistently with international trade rules by making local content a criterion of eligibility for, and payment of, subsidies for low carbon energy generation projects.

The EU has requested WTO consultations with the UK, which gives the parties the opportunity to find a solution without proceeding with litigation. If consultations fail to resolve the dispute within 60 days, the EU can request adjudication.

(Reporting by Emma Thomasson and Miranda Murray)