How the Energy Charter Treaty Endangers Ambitious Climate Policy
In order to limit the global temperature rise, it is necessary to exceed 80% the known reserves of fossil fuels in the soil. Nevertheless, companies continue to invest heavily in the exploitation of fossil fuels: In the oil and gas sector alone, there are 83% the investments planned by the largest oil companies outside what would be compatible with a 1.6°C scenario. The Paris climate agreement therefore requires governments to significantly limit the extraction and burning of fossil fuels. This necessarily leads to a devaluation of investments and other assets of companies and investors. But the fossil energy industry has a secret weapon to make taxpayers pay for their climate-damaging bad investments: The Energy Charter Treaty.
The factsheet deals with the history of the origin of this international agreement, which can be traced back to well over 100 group lawsuits before private arbitration courts. It details some of the particularly scandalous lawsuits and lawsuit threats. It also addresses the reform process that has been ongoing since the end of 2019 and represents the demands of civil society.
