Publication / 4 March 2022

Energy Charter Treaty (ECT) reform: Why it has failed to deliver on the EU’s own objectives

What is the Energy Charter Treaty (ECT)? A trade and investment treaty which protects investments in the energy sector. Its provisions, effectively unchanged since conception in 1994, include the ability for fossil fuel investors to sue governments through private tribunals for multiple-billions of dollars if action on climate change and the environment damage their future profits. This assesment shows how ECT will still threaten climate action, how it will undermine EU law and how it will favour polluters over people. It is therefore time to exit the ECT.

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