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

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MOVERS & SHAKERS

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Commercial property partner joins Clarke Willmott in Southampton

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Robert Tiffen joins Ellisons as Partner in growing Norwich office

NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

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