Climate Action Network | October 2020
CAN Europe policy briefing on the Energy Charter Treaty
The Energy Charter Treaty is an international agreement that protects foreign investors in the energy sector and allows them to challenge state measures in Investor-State Dispute Settlement (ISDS). The treaty is incompatible with the EU’s climate commitments and the current modernisation process will not fix this, as the necessary reforms are either opposed by other contracting parties or not being discussed. We therefore urge the EU and its Member States to leave the treaty and to conclude an additional agreement that excludes the possibility of ISDS cases amongst the withdrawing parties. The EU and its Member States should also ensure that no further countries join the treaty.