After reaching an “agreement in principle” on the modernisation of the Energy Charter Treaty (ECT), the European Commission’s plans received a setback with the withdrawal of seven EU member states.
Following 15 negotiation rounds that took place from July 2020 until June 2022, the failure of the modernisation of the Energy Charter Tretay became a fact. Several EU countries announced their withdrawal. The next step is to withdraw the EU/EURATOM and to develop an intra-EU agreement to cancel the sunset clause that extends the protection of foreign investment in the energy sector by 20 years after the withdrawal becomes effective.
The German government has been worried about being sued by the fossil fuel companies behind the Russian gas pipeline under the Energy Charter Treaty.
The RWE case against the implementation of the Dutch climate target provides additional evidence that EU climate law needs provisions to end protection of foreign investment in fossil fuels.
EU ministers attending the Energy Charter Conference on 16-17 December should work on the collective withdrawal from the ECT if other contracting parties oppose the phase-out of fossil fuels from the treaty’s binding provisions.
The German Presidency should end the comedy of the modernisation of the Energy Charter Treaty and work on a decision to withdraw en masse from the treaty without further delay.
The Energy Charter Treaty (ECT) is a multilateral investment agreement solely dedicated to protecting foreign investments in energy supply. By January 2020, the Treaty has been ratified by 53 countries and the European Union/Euratom. Under the ECT regime, foreign investors can sue host States through arbitration tribunals, typically, composed of party-appointed private lawyers.
The Energy Charter Treaty (ECT) is a multilateral investment agreement solely dedicated to protecting foreign investments in energy supply. By January 2020, the Treaty has been ratified by 53 countries and the European Union/Euratom. Under the ECT regime, foreign investors can sue host States through arbitration tribunals, typically, composed of party-appointed private lawyers.
A presentation by Dr. Yamina Saheb will highlight the main findings of the report and provide the audience timely analysis of the ECT modernization process before the first negotiation round planned in April 2020.
The presentation will be followed by a panel discussion and an interactive question and answer session with the audience
The EU taxpayer is the main loser from the continuation of the Energy Charter Treaty which locks Europe into carbon and energy injustice at a high cost to taxpayers.
