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Canada has lost an appeal at the World Trade Organization in a landmark case over incentives for electricity producers, the European Union said on Monday.

Ontario's environmental watchdog says the governing Liberals have failed to meet some of their green promises and may not reach them for years.

Environmental commissioner Gord Miller says the government must live up to its promises on energy efficiency standards for household products, new buildings and government offices.

He says it must also meet its promise to make energy audits mandatory before a home is sold, which appears to have been "quietly abandoned" by the government.

Mr. Miller says the Liberals made those commitments when they passed the Green Energy Act in 2009.

Three years later, he says the conservation promises of the legislation remain unfulfilled and possibly still years away from completion.

The recommendations are part of the first volume of his annual report on the province's progress on conservation.

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