The PACT project aims to provide the necessary elements for rapidly introducing
policy to combat climate change - giving parliamentarians, civil servants, and
advocates around the world access to the legal and technical expertise needed to
envisage, to argue for and to enact laws and policies that effectively protect
the climate. Find out more...
We think it is important that FITs are introduced by legislation. A policy does not have the same legally enforceable effects as a law.
This is important as it is only by law that producers can know for certain that they have rights to supply their energy into the grid. This will place them in a strong position if the grid operator is reluctant to connect, because the legal basis for the relationship between the producer and grid operator is founded in a law, not in a policy or in contract. Even if a contract is necessary to implement the law, the backing of the law will ensure that the need for a contract cannot obstruct obligations set out in the law.
It also means that investment security is increased, and improves the chances of more renewable energy plants being built.