• Energy Research
• 16. Peace & justice close

To achieve the long-term temperature goals set by the 2015 Paris Agreement and avert climate disruption, fossil fuel production cannot continue to proceed unabated. This dawning realisation has led to calls to ‘leave fossil fuels in the ground’. While a growing body of scholarship on ‘supply-side climate policies’ shows how policies curbing fossil fuel production can contribute to climate objective, there has been scarce attention to the role of law in regulating fossil fuel production. With a view to filling this gap, this article investigates the changing role of international law in addressing fossil fuel production to achieve climate change goals. The limitations of the siloed thinking in international law are illustrated with reference to international climate change law, human rights law, and investment law. The normative guidance emerging from these bodies of law for governments and fossil fuel companies regarding the transition away from fossil fuel production is unclear, and at times conflicting. The article thus calls for a rethinking of international law in supporting the shift away from fossil fuel production to achieve climate goals.

The EU Emissions Trading Directive is expected by European energy-intensive industries to harm their competitiveness vis-à-vis non-European competitors. Many additional measures have thus been proposed to 'level the playing field' and to protect the competitiveness of European energy-intensive industries within the larger effort of reducing Europe's greenhouse gas emissions and of meeting its obligations under the 1997 Kyoto Protocol. This article evaluates a range of proposed measures based on a set of political and legal criteria, including environmental effectiveness; the need to consider differentiated commitments, responsibilities and capabilities; conformity with world trade law and European Union law; and Europe's overall political interests. We discuss measures that could be adopted by the European Union and its member states, such as direct support for energy-intensive industries, restrictions of energy-intensive imports into the European Union through border cost adjustments, quotas or technical regulations, and cost reimbursement for affected developing countries. We also analyse measures available to multilateral institutions such as the United Nations Framework Convention on Climate Change and its Kyoto Protocol and the World Trade Organisation. We conclude with a classification of the discussed measures with red (unfeasible), yellow (potentially feasible) or green (feasible) labels. © 2006 Elsevier Ltd. All rights reserved.