Both ENDS
The European Union's decision to exit the Energy Charter Treaty (ECT) is a landmark victory for climate action. For years, the ECT's Investor-State Dispute Settlement (ISDS) mechanism has enabled fossil fuel companies to challenge climate policies, hindering progress towards sustainability.
At the core of the Fair, Green, and Global (FGG) Alliance’s mission is the commitment to building a just and sustainable world. As members of this alliance, Both ENDS, SOMO, and the Transnational Institute (TNI) recognise the urgent need to reimagine global investment frameworks. These frameworks, entrenched in outdated treaties such as Bilateral Investment Treaties (BITs) and the Energy Charter Treaty (ECT), often prioritise corporate profits over human rights, environmental sustainability, and social justice.
The decision of Minister for Climate and Energy Rob Jetten to withdraw from the Energy Charter Treaty (ECT) is good news for the energy transition in the Netherlands and beyond. Governments of countries that are party to this treaty can therefore shape the transition to sustainable energy without having to fear claims by Dutch-based businesses.
The government of Kenya has officially terminated its bilateral investment treaty (BIT) with the Netherlands, marking a significant win for economic justice and environmental protection. Kenya’s decision reflects a growing global trend of rethinking outdated treaties that often prioritize corporate interests over public welfare. The Dutch Minister for Foreign Trade and Development recently confirmed that Kenya unilaterally ended the treaty in December 2023, rendering it inoperative from 11 June 2024. Kenya now joins South Africa, Tanzania, and Burkina Faso as the fourth African country to terminate its BIT with the Netherlands.
Earlier this month, the Energy Charter Treaty (ECT) has decided to halt the geographic expansion to new member states, pending the finalization of the ongoing modernization process within the ECT. Both ENDS and our partner SEATINI, who amongst other things have been calling for this stop, welcome this decision.
Disposable fashion items continue to flood into the country, the nitrogen crisis has brought construction to a standstill and energy poverty is on the rise, but Dutch politicians are contemplating their navels. These are problems that we can never solve on our own. The clothes we wear, the food on our plates, and the electricity that comes out of our wall sockets – they are all produced in global trade and production chains. With far-reaching consequences, both in our own country and far, very far beyond our borders. It would be naive to think that we can solve all these problems through domestic policies alone. And vice versa: we would be evading our responsibilities if we continued to believe that the Netherlands only plays a humble role on the global stage. Latest figures show that the Netherlands is the fourth largest exporter and the seventh largest importer of products worldwide. With the elections on the way, it is time to look beyond our own small country. Because it is also important to vote with a worldwide impact.
