ISDS Case Map
ECT
Energy Charter Treaty
This article focuses on the implications of the revised text for dispute resolution under the ECT. We address the environmental focus of the anticipated reforms and conciliation of State-to-State disputes relating to sustainable development and climate change.
EU countries are voting with their feet, quitting the investor protection pact despite the EU’s efforts to reform it – but the European Commission warns it will be worse to be outside than in.
A company registered in Switzerland, RSE Holding AG, has initiated an international arbitration proceeding against Latvia claiming that changes effected to the regulatory framework applicable to electricity produced in high-efficiency cogeneration are in breach of European rules.
A tribunal operating under the World Bank has ruled in favor of ten companies that initiated arbitration with the argument that Romania violated the Energy Charter Treaty by lowering incentives for their solar power plants.
Quitting the ECT, which protects fossil fuel investors from policy changes that might threaten their profits, was ‘coherent’ with Paris climate deal, Macron said.
Signing the ECT would give the transnational companies in the energy sector a weapon to re-colonise Nigeria, as it would also be incompatible with Nigeria’s economic diversification aspirations.
The Netherlands is leaving a controversial energy treaty because it conflicts with Paris climate accord commitments, energy minister Rob Jetten said
The renegotiated ECT does not rise to the mounting global challenges regarding energy investment, climate action, and sustainable development.
Extending protection under the Energy Charter Treaty to investments in carbon capture, utilization and storage, hydrogen, and ammonia, among other emerging energy technologies and products, could hamper the ability of States to end reliance on fossil fuels.
Spain has initiated proceedings to withdraw from the Energy Charter Treaty, signed by 53 countries and in force since 1998, designed to protect foreign investment in energy infrastructure.
