ISDS Case Map
ECT
Energy Charter Treaty
In 2021-22, Climate Change Counsel conducted a study of arbitral awards rendered under the Energy Charter Treaty (ECT).
Recent reforms in the French solar energy market mean that investors need to take action to protect their investments.
From a climate perspective, the expected reform outcome is a failure. No Contracting Party will end investment protection for fossil fuels in a timeline that is necessary to align with the Paris Agreement.
The German government has been worried about being sued by the fossil fuel companies behind the Russian gas pipeline under the Energy Charter Treaty.
Campaigners say the UK and Switzerland are defending fossil fuel interests in Energy Charter Treaty modernisation talks to tempt firms to relocate their HQs.
The fossil fuel industry is the most litigious industry in the ISDS system by number of cases, accounting for almost 20% of the total known ISDS cases across all sectors.
This policy brief outlines not only serious reasons for terminating the treaty but also various possible exit scenarios.
A new example of how this secretive corporate court system is undermining climate and environmental policies of EU member states has been brought to light.
Countries party to the Energy Charter Treaty are under yet more pressure to reform the agreement following the Cop26 climate summit, as they weigh the benefits of climate action against the likelihood of getting sued.
Last year Ascent Resources initiated arbitration proceedings against the Slovenian state under the UK-Slovenia Bilateral Investment Treaty and the Energy Charter Treaty.
