IISD in the news

EU states 'revolt' against controversial energy treaty

Energy companies have been suing European governments for billions of euros to protect their fossil fuel investments in recent years via an obscure treaty adjudicated in secret arbitration courts. But that could be about to change. France and the Netherlands announced their intention to exit the Energy Charter Treaty (ECT) last week saying it was not in line with climate goals. Italy pulled out in 2016, with Spain and Poland following in recent months. And more countries could follow, say analysts. "You could definitely call it a revolt," said Lukas Schaugg, law analyst with the International Institute for Sustainable Development (IISD), a Canada-based think tank, of the recent exodus from the treaty. With the Netherlands having played an integral role in establishing the ECT, he called the decision to withdraw "a significant step."

October 25, 2022