The EU, the WTO and Indirect Land-Use Change

Efforts to meet the European Union's (EU) alternative energy targets have resulted in increased production of biofuels. This production has resulted in deforestation-related emissions through displacement of agricultural production, a problem known as indirect land-use change. The European Commission (EC) has proposed regulatory options to respond to this problem, but all risk not being in conformity with World Trade Organization (WTO) law. Trade law challenges result from the underlying methodological uncertainty, and the attempt to address a systemic problem on the level of individual producers. Yet, this does not necessarily indicate that the intent of these regulations is to protect EU markets. Thus, this is an instructive case study to examine the relationship between WTO law and complex, emerging environmental problems.