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

The network of international trade and investment treaties is large and complex. The Netherlands alone has signed more than 70 bilateral investment treaties (BITs) and is party to the trade and investment agreements concluded by the EU, like the EU-Mercosur and EU-Indonesia trade deals.

To address the climate crisis we need to urgently transition away from fossil fuels towards clean, renewable energy. However, this transition is not only about changing energy sources. It requires an inclusive and fair process that tackles systemic inequalities and demanding consumption patterns, prioritizes environmental and social justice, and which does not repeat mistakes from the past.

In 2011 one of the world’s largest gas reserves was found in the coastal province of Cabo Delgado, in the north of Mozambique. A total of 35 billion dollars has been invested to extract the gas. Dozens of multinationals and financiers are involved in these rapid developments. It is very difficult for the people living in Cabo Delgado to exert influence on the plans and activities, while they experience the negative consequences. With the arrival of these companies, they are losing their land.

Both ENDS calls on the government only to provide export credit insurance to sustainable projects that cause no social and/or environmental damage in the countries where they take place.

Indigenous communities in Paraguay saw their attempts to regain their ancestral lands thwarted by German investors. In Indonesia, US-based mining companies succeeded to roll back new laws that were meant to boost the country’s economic development and protect its forests.  This is the level of impact that investment treaties can have on social, environmental and economic development and rights. Why? Because of the ‘Investor-to-State Dispute Settlement’ clauses that are included in many such treaties.

With our Wetlands without Borders program, we work towards environmentally sustainable and socially responsible governance of the wetlands system of the La Plata Basin in South America.

About one in every six people, particularly women, directly rely on forests for their lives and livelihoods, especially for food. This shows how important non-timber forest products (NTFPs) and forests are to ensure community resilience. Not only as a source of food, water and income, but also because of their cultural and spiritual meaning.

International trade agreements often have far-reaching consequences not only for the economy of a country, but also for people and the environment. It is primarily the most vulnerable groups who suffer most from these agreements. 

Because of the close relationship with their living environment, local communities often have the best ideas for the sustainable and equitable use and governance of land, water and forests. These environmentally just practices and processes successfully protect and restore ecosystems and address climate change. They are essential in the light of the multiple crises the world faces, but are in dire need of financial and policy support.