Publication
UK announces withdrawal from the Energy Charter Treaty
The Energy Charter Treaty (ECT) is a multilateral investment treaty which provides a framework for energy cooperation between contracting states. Under the ECT, energy companies are able to commence arbitration against states for alleged breaches of the ECT, which can include where energy or climate policies are inconsistent with the rights enshrined in the treaty. In recent years, Italy, the Netherlands, Spain and the Czech Republic have been subject to claims worth billions of euros under the ECT not only in relation to fossil fuels investments but also renewable investments, where subsidies to support renewables developments have been changed or withdrawn. The ECT has been criticised as being too investor friendly and a curb on states’ right to regulate.