EU challenges Taiwan’s local content rules on offshore wind projects

The European Union has requested dispute settlement consultations at the World Trade Organisation (WTO) concerning Taiwan’s use of local content criteria for offshore wind energy projects.

The EU said it is committed to the global green transition and, as such, welcomes Taiwan’s efforts to support green energy. The EU also said, however, that such efforts must respect the global level playing field and comply with international trade rules.

In the view of the EU, Taiwan’s local content eligibility and award criteria in energy capacity allocation auctions for offshore wind farms are "inconsistent" with its WTO commitment to not discriminate against imported goods and services.

The EU said the WTO-inconsistent local content requirements in Taiwan’s offshore wind policy have a negative impact on a sector of strategic importance to the EU. The EU wind energy sector alone has an annual turnover of €60 billion (US$65 billion; 2024 figure).

The EU said that, moreover, in discriminating against non-Taiwanese goods and services, the local content requirements mean efficiency losses and price increases, ultimately making the transition to a secure supply of renewable energy more difficult and costly and therefore hindering global climate ambitions.

The dispute settlement consultations that the EU is requesting are the first step in WTO dispute settlement proceedings. If they do not lead to a satisfactory solution within 60 days, the EU can request the WTO to set up a panel to rule on the matter.

The EU is hopeful that, owing to the close and productive relationship between the EU and Taiwan, a mutually satisfactory solution can be found in the course of the dispute settlement consultations.