Mass withdrawal from energy investment treaty not imminent, member states say

20 October 2022, 06:45

Mass withdrawal from energy investment treaty not imminent, member states say

The Netherlands has announced that it will withdraw from the Energy Charter Treaty, which protects energy investments against unexpected state intervention. Following Spain and Poland, it is thus another country that has recently decided to leave the treaty.

The Energy Charter Treaty is no longer fit for the transition from fossil fuels to renewables, set in motion by the 2015 Paris conference and the so-called Paris Agreement. At least, this is suggested by the recent moves by Spain, Poland and the Netherlands, which have decided to withdraw from the treaty.

The Energy Charter Treaty is an international agreement that creates a legal framework for cross-border cooperation in the energy sector, primarily in fossil fuels. The treaty covers all aspects of commercial energy activities, including trade, transit, investment and energy efficiency. It includes procedures for resolving disputes both between states that are parties to the treaty (with other states) and between states and investors from other countries that have invested in the territory of the former.

Translation disclaimer

This article is a machine translation of the Czech original and has not yet been fully reviewed. In case of any doubt, please refer to the Czech version.

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