A guidefaden 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 so often used by investors to sue states in arbitral tribunals. The ECT protects all investments in the energy sector, including coal mining, oil fields and gas pipelines. State interventions that reduce the profits of investors can be attacked outside normal courts before international arbitration tribunals consisting of three business lawyers. Thus, governments can be forced to pay enormous 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 Due to the threat ECT poses to climate policy, it has been described by the European Commission as “outdated” and “no longer sustainable”.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 view of the growing controversy surrounding the contract, this guide seeks to help activists, journalists and decision-makers to expose pro-ECT PR. He identifies the defenders of the ECT and their claims and offers well-researched counter-arguments.
