The ECT is an international investment agreement from the 1990s. It allows foreign investors in the energy sector to sue governments for decisions that might negatively impact their profits, including climate policies. For example German coal giant RWE is suing the Netherlands for €1.4 billion in compensation for the Dutch coal phase-out. Because the ECT’s legal regime favours investors, is unpredictable, and the fines that governments can be hit with are catastrophically large, the treaty acts as a strong incentive to delay, weaken, or drop much-needed action to advance the energy transition.
I have previously given a Climate Warning to the Energy Charter Treaty because it could help fossil fuel companies to sue governments if they do climate action. Read warning: https://app.wedonthavetime.org/posts/e6ad86ce-2651-4390-ac17-d59a68d3dc5b
This needs to end. Climate Action Network has started a petition to end the treaty. 1 million people have signed it already. Now you can do too: http://caneurope.org/ect-petition/
Climate Action Network
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