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The Energy Charter Treaty (ECT) could become a massive threat to efforts by the EU and its member states to achieve their climate targets, according to a new analysis by Investigate Europe. The team of journalists gauged the size of this threat by looking at analyses by NGO Global Energy Monitor and Oil Change International, a research and advocacy organisation. These concerned oil and gas fields, coal-fired power plants, gas-fired plants, liquefied natural gas terminals and gas pipelines.
Signed in 1994 and in legal force since 1998, the treaty is still little known. It currently has 55 signatories and contracting parties, including the EU, and focuses on four different areas: the protection of foreign investments, non-discriminatory conditions for trade in energy materials, the resolution of disputes between investors and host states, and the promotion of energy efficiency.
The fourth area even aims at minimising “the environmental impact of energy production and use”. But this seems ambitious, given that , the treaty is mainly used by European companies and investors to sue member states – or threaten to do so.
In fact, if a government violates the principle of “fair and equitable treatment”, energy investors or companies can sue states before international arbitration courts for billions of euro…
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