RWE must immediately withdraw illegal lawsuits!
Berlin, 27 July 2023: Today's decision by the Federal Court of Justice (BGH) that Member States of the European Union can avail themselves of upstream national legal protection against arbitration increases the pressure on RWE. In addition to Germany, the Netherlands had also sued before the Federal Court of Justice, which defended itself against the ECT actions of RWE and Uniper against the Dutch coal phase-out. (1) Previously, the European Court of Justice had already ruled that ECT actions within the EU were not admissible.
Fabian Flues, trade expert at PowerShift, says: “With a lawsuit before a private arbitration court, RWE tried to raise billions for its climate-damaging coal-fired power plants in the Netherlands. The Federal Court of Justice has now confirmed that this action is inadmissible. RWE must immediately withdraw its illegal lawsuit and stop putting further stones in the way of the coal phase-out.”
The Energy Charter Treaty, which has made these lawsuits possible, is highly controversial. After Germany and other countries had already withdrawn from the Treaty, the European Commission had proposed the joint withdrawal of the EU at the beginning of July.
Fabian Flues continues: “The withdrawal of the EU from the Energy Charter Treaty has become unavoidable. After the European Commission has finally proposed a joint exit of the EU, the Council must quickly agree to it. Private arbitral tribunals may no longer rule on important climate laws.’
(1) The third lawsuit concerns the ECT lawsuit brought by Irish investor Mainstream Renewable Power against the Federal Republic of Germany for an offshore wind farm in the North Sea. All three cases were dealt with by the BGH together. Uniper had to withdraw the ECT lawsuit against the Netherlands after its nationalisation, but the BGH proceedings continued anyway.
Press contacts
Fabian Flues (PowerShift trading expert)
fabian.flues@power-shift.de, 0159 06113733
