The EU-biofuel case: legality affirmed, yet legitimacy questioned

Purpose This study aims to investigate the legality and legitimacy of the European Union (EU)’s biofuel policies, which have been widely debated in the international community. Despite the World Trade Organization (WTO) Panel rulings (DS593 and DS600) upholding the majority of the EU measures’ legality, the legitimacy of these measures remains contested due to deficiencies in input and output legitimacy. Design/methodology/approach This study uses a textual research approach, specifically case analysis, to scrutinize the EU’s biofuel policies. It also uses value analysis to evaluate the legitimacy of these policies. By examining the WTO Panel rulings (DS593 and DS600) and the EU’s regulatory framework, this study identifies procedural and substantive deficiencies in the EU’s biofuel regulations. Findings The findings reveal that the WTO ruling on the EU biodiesel dispute lacks input legitimacy, as it effectively endorsed the extraterritorial expansion of unilateral regulatory authority while failing to afford affected states meaningful procedural safeguards in the measure’s design and adoption. In terms of output legitimacy, the WTO ruling marginalized the principle of common but differentiated responsibilities and respective capabilities, permitted the EU’s unilateral determination of emission reduction standards and remained silent on the symmetrical yet incompatible human rights claims advanced by both parties – thereby depriving the decision of a coherent normative foundation. Originality/value The originality of this paper lies in its analysis of the WTO Panel rulings (DS593 and DS600) from the perspective of international rule of law. Unlike traditional legal analyses, this study delves into the value dimensions, incorporating political philosophy to assess the legitimacy of the EU’s biofuel policies. This paper provides a comprehensive evaluation that extends beyond mere legal compliance to consider the broader implications for international governance and sustainable development.