Subsidies in the Renewable Energy Industry Under the World Trade Organization Regime and Suggestions for Vietnam

With the continuous increase in greenhouse gas emissions and global average temperature, the effects of climate change are predicted to grow. In Vietnam, growing demand for subsidy programs to attract renewable energy investments must be balanced with the government’s obligation to ensure their conformity with the World Trade Organization (WTO) regulations. This article analyzes subsidy-related rules in WTO agreements and reviews countervailing investigations on renewable energy-related products from Vietnam. Based on the analysis, the authors propose that the Vietnamese government implement subsidy programs in accordance with the WTO’s conditions.