As EU member states withdraw from the Energy Charter Treaty en masse, developing economies should call for an overhaul of many more investment treaties. Unfortunately, Europe continues to pressure poor countries to sign and abide by such agreements – a double standard with grave consequences for the environment and workers.
WASHINGTON, DC – A stream of European countries have exited the controversial Energy Charter Treaty (ECT) over the past year. France, Spain, the Netherlands, Germany, Poland, Luxembourg, Slovenia, and Denmark have all withdrawn from the ECT, or announced their intention to do so, joining Italy, which left in 2016. By allowing foreign energy investors to sue national governments for losses caused by policy changes, the ECT prevents countries from delivering on their commitment to meet the Paris climate agreement’s targets and effectively neutralizes their plans to tax oil companies’ windfall profits.
WASHINGTON, DC – A stream of European countries have exited the controversial Energy Charter Treaty (ECT) over the past year. France, Spain, the Netherlands, Germany, Poland, Luxembourg, Slovenia, and Denmark have all withdrawn from the ECT, or announced their intention to do so, joining Italy, which left in 2016. By allowing foreign energy investors to sue national governments for losses caused by policy changes, the ECT prevents countries from delivering on their commitment to meet the Paris climate agreement’s targets and effectively neutralizes their plans to tax oil companies’ windfall profits.