![]() ![]() Under the ECT, all investments made, and all forms of energy, are protected on a long-term basis, regardless of their nature or the consequences of their operation. The ECT therefore establishes international arbitration tribunals jointly appointed by both sides in the event of disputes in order to increase legal certainty for investments e.g., in the case of environmental policy measures that affect the economic perspectives of such investments. ![]() In order to encourage and secure investments in the energy sector, the contracting parties agreed upon the possibility for compensation claims in order to secure a level playing field for all energy companies, without relying on national jurisdictions, which were not always reliable in many participating states. ![]() The Energy Charter Treaty (ECT) in international law was established in 1994 by primarily Western and post-Soviet states at the time of the economic and judicial transformation of Eastern Europe. However, to do so as currently planned, with transitional periods, is not sufficient. Nevertheless, there are a lot of arguments in favour of a comprehensive reform of the treaty. Even if all of this was to be disputed, there are also considerable possibilities for the contracting states to subsequently exclude claims for compensation. The arbitral ECT tribunals would therefore have to dismiss claims and if they do not do so then, for example, EU member states could take action against such verdicts of the arbitral tribunals before the ECJ. This is further underlined by a legal interpretation of the ECT based on the Paris Agreement and on international human rights law. It is shown that, with a revised legal interpretation of the ECT, such claims usually cannot be upheld at all, except in the case of direct expropriations. Methodologically, a legal interpretation is conducted, i.e., the ECT is interpreted grammatically and systematically. This paper analyses the much-lamented negative climate policy and energy transition impacts of the Energy Charter Treaty (ECT) in international law, a treaty that serves as a basis for the compensation claims of fossil fuel companies in response to losses incurred because of climate policy measures. In addition to climate change, the current war in Ukraine has highlighted the urgency of a rapid transformation to post-fossility. ![]()
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