Renewables, Investments, and State Aids: Exploring the Legal Side of Polycentricity

Which legal changes could steer the low-carbon transition? This chapter argues that one of the key factors is the management of the interplay among different legal regimes. Conflicts among EU climate law, State aid law and international investment law are a case in point. These three legal regimes affect investments in renewable energy sources, but they cannot be coordinated unless each of them shares the goals pursued by the other ones. This approach, grounded on the idea of polycentric governance, could spur investments and avoid the frictions stemming from attempts at imposing a hierarchical order.