The International Centre for Trade and Sustainable Development has warned that the World Trade Organization might soon declare green energy policies including green energy subsidies as illegal and contrary to international guidelines.

The Geneva-based group said that a WTO preliminary report has found that the Ontario's feed-in-tariff system is not fair to foreign suppliers of equipment for renewable energy generating facilities and it favors domestic suppliers. The feed-in-tariff system, which was launched by the government in 2009, requires energy suppliers to source up to 60 per cent of their equipment from within the state if they wish to be eligible for subsidies.

Japan had filed a complaint at the WTO against the Canadian state's policies alleging that it leads to illegal subsidies for Ontario companies. The European Union has also joined the compliant saying that policies are against the international WTO provisions. The WTO provisions agreed to by its members assure that policies of any governing body does not put foreign players in a disadvantaged position or offer unfair support to local players to have an advantage over others.

The group indicated that the WTO is expected to announce the decision in November.