The Energy Charter Treaty
The Energy Charter Treaty (ECT) was designed to enable multilateral cooperation in the energy sector. However, in the decades since its signature, it has proven to be the most used treaty in investor–state arbitration, leading to record-breaking damages awards that have cost governments millions of dollars. The looming threat of claims from fossil fuel investors can prevent governments from taking ambitious climate action. Widespread recognition that the ECT is an obstacle to the transition to a low-carbon economy had led to negotiations on how to effectively “modernize” the treaty.
IISD conducts research, analysis, and capacity-building events to influence the modernization process and ensure it supports an expedited phase-out from fossil fuels, as well as to prevent the ECT model from being replicated or maintained in other regions of the Global South. We also actively engage with policy-makers, civil society actors, and the wider public on legal and policy options, including the possibility of withdrawal and termination. In 2020, we worked with partners to urge the European Commission to reconsider its approach to ECT modernization so that the treaty undergoes the reforms necessary for achieving climate action objectives.
Publications
IISD conducts in–depth research on the ECT’s design, implementation, and implications for sustainable development objectives—especially as they relate to climate action.
Submission to the Organisation for Economic Co-operation and Development on Investment Agreements and Climate Change
This document by CIEL, ClientEarth, and IISD was submitted to the OECD's public consultation on how policy–makers can redesign investment treaties and policies in response to the climate crisis.
How the Energy Charter Treaty Risks Undermining the Outcomes of COP 26
This article examines how new climate pledges, including commitments to phase out coal, halt new drilling for gas and oil reserves, and reduce global methane emissions, might be undermined by the ECT.
Investor–State Disputes in the Fossil Fuel Industry
This report analyzes the extent to which investor–state disputes protect foreign investments in fossil fuel projects—and therefore obstruct climate action.
Investment Protection Over Climate Protection?
This blog post in one of Germany's leading constitutional law publications discusses withdrawal from the ECT in the context of the German parliamentary elections. In German.
Debunking Myths on the ECT and the Global Climate Agenda
This article debunks assumptions that the ECT is an adequate legal instrument for protecting and promoting investments in renewable energies.
Reform or Withdrawal from the ECT: What does it mean for coal?
This article focuses on how reforming—or withdrawing from—the ECT would address the urgent need to phase out coal–fired power plants.
Events and capacity building
IISD hosts events and capacity building workshops to address the concerns that the ECT raises for a variety of audiences, including political stakeholders, developing country partners, and civil society.
Aligning Investment and Climate Goals: Where does the Energy Charter Treaty modernization stand?
This webinar, hosted in partnership with the Centre for International Environmental Law and ClientEarth, will discuss the progress achieved so far in the ECT modernization process.
The ECOWAS Energy Protocol: Training workshop for West Africa
This workshop for member states of the West African Economic and Monetary Union focused on the ECOWAS Energy Protocol, its risks in relation to energy transition policies, and potential options for reform.
Leaving the ECT: Overcoming the Sunset Clause obstacle
IISD experts were invited to be panelists at a webinar hosted by the European Parliament on options for withdrawal from the ECT.
Virtual Discussion on the ECT Modernization Process
IISD and ClientEarth held virtual discussions with EU member state officials to examine the key issues at play in the modernization negotiations.
Project team

Nathalie Bernasconi-Osterwalder
Executive Director, IISD Europe; Senior Director, Economic Law & Policy

Suzy H. Nikièma
Lead, Sustainable Investment

Sarah Brewin
Associate, Advisor Agriculture and Investment

Abas Kinda
Associate

Nyaguthii Maina
Associate

Lukas Schaugg
International Law Analyst

Joe Zhang
Senior Law Advisor
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