header-logo header-logo

12 July 2024 / James Rogers , Jonathan P Cowe
Issue: 8079 / Categories: Features , International , Environment
printer mail-detail

Leaving the ECT: bad for investors, wrong for the climate?

James Rogers & Jonathan P Cowe warn of the unintended consequences of leaving the Energy Charter Treaty
  • Explores the ramifications of the UK and EU’s decision to withdraw from the Energy Charter Treaty.
  • Argues withdrawal removes important legal protections for investments in the energy sector, deterring investment in renewables.

The Energy Charter Treaty (ECT) is an international multilateral agreement established in the 1990s to protect foreign investments in the energy sector. The treaty’s primary purpose is to ensure a stable and transparent investment environment by requiring member states to uphold principles of fair and equitable treatment of investments. It also prohibits the expropriation of investments without prompt compensation and includes a mechanism for investors to seek legal redress for breaches of these obligations via international arbitration. These protections cover all energy-related investments, from fossil fuels to renewable energy projects.

The treaty was a product of the 1990s wave of globalisation and efforts to facilitate East-West trade in energy, particularly oil and gas. Signatories to the ECT included

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Walkers—Muriel Marseille

Walkers—Muriel Marseille

Ashurst's Chief Risk Officer joins Walkers

Excello Law—John Osborne

Excello Law—John Osborne

Northern family lawyer John Osborne joins Excello

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

Trio of promotions announced at Kidderminster law firm mfg Solicitors

NEWS
A sole director can conspire with their own company for the purposes of the tort of unlawful means conspiracy, the High Court has ruled in a judgment with potentially wide implications for business disputes
The Court of Appeal has reinforced that domicile depends on intention rather than residence alone, in a significant post-Brexit ruling on cross-border financial remedy claims
The Chancery Division's long history comes to an end this autumn as it is reborn as the Business and Property Division, prompting questions over whether the shake-up is really necessary
The Financial Conduct Authority (FCA) continues to show that failing to disclose regulatory issues can attract harsher consequences than the original misconduct itself
Rejecting a generous settlement can prove an expensive mistake, as two recent high-profile cases demonstrate
back-to-top-scroll