The reform of the Energy Charter Treaty fails to meet the EU’s objectives

Why the EU must withdraw from the ECT now

The Energy Charter Treaty (ECT) is a trade and investment agreement between countries in Europe and Asia that protects investments in the energy sector. Under the ECT, fossil fuel companies can sue governments in private arbitration for billions of dollars, for example, if government intervention against climate change affects future profits. In this short factsheet, we assess the reform process of the treaty, which was launched in 2018. What did the EU hope to achieve with the reform? And will it achieve these goals?

Fabian Flues

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