On 7 July 2023, the European Commission formally proposed a coordinated European Union withdrawal from the Energy Charter Treaty (ECT), one of the world’s largest multilateral investment treaties, citing its incompatibility with the EU’s enhanced climate ambitions under the European Green Deal and the Paris Agreement. This comes against the background of long-running – and to date, unsuccessful – attempts to ‘modernise’ the ECT, with a number of States (including EU Member States) having already announced their withdrawal from the treaty. Given the uncertainty created by these developments, existing and prospective investors in the energy sector in the EU are recommended to review their investment structures and other protections available to their investments (for example, in investment contracts). Continue reading
Tag: Paris Agreement
On 29 November 2022, a group of 19 States published the draft text of a proposed United Nations General Assembly resolution which would request an advisory opinion from the International Court of Justice (“ICJ“) on climate change (the “Draft Resolution“) (available here). The initiative, led by the small island State of Vanuatu, was described by Vanuatuan President Nikenike Vurobaravu at COP27 as intended to “strengthen our understanding” of what “international law already obliges” States to do in relation to action on climate change. This post provides an overview of the ICJ’s advisory function, before discussing the potential implications of an advisory opinion on climate change.
On 24 June 2022, the Energy Charter Conference (ECC) confirmed that the Contracting Parties to the Energy Charter Treaty (ECT) had reached an Agreement in Principle on the modernisation of the treaty. We look at the key commitments made below.