The EU has brought a lawsuit against Britain at the World Trade Organization over its subsidies for offshore wind farms, leading to a notable escalation in post-Brexit tensions.

Brussels has claimed that new standards introduced by the UK government when subsidising offshore wind projects favour those using domestically sourced turbines rather than imported ones, in breach of WTO rules.

The move marks the first time a dispute involving the global trade body has emerged between the EU and its former member states since the end of the Brexit transition period in December 2020. Meanwhile, the two sides remain deadlocked over the EU. Implementation of the Withdrawal Agreement.

“The UK government is using criteria in favour of the UK over imported content when awarding subsidies for offshore wind projects,” European Commission Say in a statement. “This violates a core WTO principle that imported products must be able to compete on an equal footing with domestic products, and harms the interests of EU suppliers, including many small and medium-sized enterprises, in the green energy sector.”

The UK government said it would “strictly question” the claim.

The UK’s CFD scheme provides financial support for green energy projects (actually mainly offshore wind farms) during the tender process.

Since December, the UK has asked bidders to outline how much contract value they will produce in the UK to determine their eligibility. Payments then depend on whether the operator sticks to its commitment to local production.

“This would incentivise operators to favour UK content in their applications to the detriment of imported inputs,” the commission said. It added that the WTO’s national treatment principle prohibits members from discriminating against imported products in favor of domestic products.

“Furthermore, such local content standards lead to efficiency losses and higher prices for consumers, ultimately making the transition to a secure supply of renewable energy more difficult and expensive,” the commission said.

The UK’s installed wind power capacity is second only to China.But this focus has not translated into Employment and manufacturing in the UK Prosperity has instead benefited foreign companies, including those in the EU and China.

Lobby group RenewableUK estimates that only 29% of capital spending goes to Offshore Wind Power Project into the UK economy.UK Prime Minister Boris Johnson wants to boost capital spending levels UK supplier To between 40% and 50%, and 60% of lifetime expenses, including maintenance.

A British official said ministers were “confused” about why Brussels would challenge the plan when EU countries use similar methods. “At a time when the West should be unified beat Putin, this jealousy by Brussels is misjudged and out of place,” he said. “We should work together to strengthen Europe’s clean energy security, not quarrel in court. “

The two sides have 60 days to reach an agreement at the WTO before Brussels can ask an arbitration panel to rule on the dispute, which could take at least a year.

Brussels’ move could increase domestic political pressure on Johnson to suspend part of the deal. Northern Ireland Agreement by calling its Article 16Many Conservative MPs have urged him to do so and end checks on trade between Northern Ireland and the UK as part of Brexit.

“We are disappointed that the European Commission has taken this action at a time when we are focused on improving energy security and home-grown renewable energy supply,” the UK government said, adding: “The UK follows WTO law and will strictly abide by challenges to the EU. .”