A guidethread for media, politics and civil society
The Energy Charter Treaty (ECT), an investment agreement for the energy sector, has recently been in the spotlight. No other treaty has been used so frequently by investors to sue states before arbitration tribunals. The ECT protects all energy investments, including coal mining, oil fields and gas pipelines. State interventions that reduce the profits of investors can be challenged outside normal courts before international arbitration tribunals made up of three business lawyers. So governments can be forced to pay huge amounts of compensation if they lose an ECT case.
For example, the German energy group RWE is suing the Netherlands for 1.4 billion euros in compensation for the coal phase-out by 2030. Due to the threat the ECT poses to climate policy, it has been described by the European Commission as "obsolete" and "no longer sustainable". MEPs from all over Europe have called on the EU member states to leave the treaty together if it continues to protect dirty energy sources. After being sued several times, Italy has already taken this step.
In light of the growing controversy surrounding the contract, this guide seeks to help activists, journalists and decision-makers expose pro-ECT PR. It identifies the defenders of the ECT and their claims and offers well-researched counterarguments.
English (US)