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.

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.

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 These frameworks, entrenched in outdated treaties such as Bilateral Investment Treaties (BITs) and the Energy Charter Treaty (ECT), often prioritise corporate profits over human rights, environmental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 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 Kenya’s decision reflects a growing global trend of rethinking outdated treaties that often prioritize corporate interests over public welfare.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. 

Standing in Belém during COP30, I felt the weight of the moment. We came to the Amazon hoping for decisive progress on phasing out fossil fuels, yet the final outcome fell far short of the ambition science and justice demand. The agreement brought welcome commitments on adaptation finance and global indicators, but it refused to confront the structural forces that make climate action so difficult.

On 23 May, the Netherlands celebrates 60 years of bilateral investment treaties (BITs). The first BIT was signed with Tunisia in 1963. These treaties were intended to make an important contribution to protecting foreign investments by Dutch companies. A study by SOMO, Both ENDS and the Transnational Institute (TNI), however, shows that in practice they mainly give multinationals a powerful instrument that has far-reaching consequences people and the environment worldwide.

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.

Both ENDS is present at COP30 to advocate for genuine access to climate finance for locally led, gender-just climate solutions and the mechanisms that facilitate this, including those for farmer-led restoration. Furthermore, the organisation participates to ensure the crucial connection between the climate negotiations and the trade and investment frameworks that shape them.

Learn more about the Both ENDS team at COP30 below, and find all the activities and side-events in which Both ENDS will participate.

Recently, many newspapers have written about Brussels’ rush to finalize the trade agreement between the EU and the South American Mercosur countries. According to the European Commission, national parliaments do not need to approve it because the trade part and the “political” part have been separated. This “splitting” means that the trade part can be approved as an EU-only decision by the European Council and the European Parliament, while national parliaments are sidelined and the political-cooperation part is postponed. Both ENDS and its partners are deeply concerned and are calling on the Dutch government to vote against this outdated agreement.

The trade agreement with South America is harmful to farmers, the climate, and biodiversity, on both sides of the Atlantic. It’s time to take this deal off the table once and for all, argues Fernando Hernandez, Senior Policy Officer for Trade and Investment at Both ENDS.