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 These frameworks, entrenched in outdated treaties such as Bilateral Investment Treaties (BITs) and the Energy Charter Treaty (ECT), often prioritise corporate profits over human rights, environmental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.

Shell is suing the Netherlands in yet another attempt to evade its responsibility for decades of gas extraction in Groningen. For years, gas production has triggered earthquakes, damaged over a hundred thousand homes, and left residents living in prolonged insecurity, still waiting for repairs, reinforcement, and 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 Kenya’s decision reflects a growing global trend of rethinking outdated treaties that often prioritize corporate interests over public welfare.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.

Today, Both ENDS and SOMO are publishing the report Phasing out ISDS in the Netherlands: a roadmap. In the report, we highlight the Netherlands’ role in the ISDS system and offer practical guidance on phasing out ISDS.

Through its new project “Climate Accountability in EU Trade: Testing the SEP and DAGs for Climate-Linked FTA Enforcement” Both ENDS, with support from the European Climate Foundation, is exploring how the European complaints mechanism (SEP) and Domestic Advisory Groups (DAGs) can be more effectively used to advance climate accountability. The project runs for 13 months, until end of 2026.