Share this on social media
Despite controversy, the Energy Charter Treaty is silently being pushed into Africa
(EurActiv, 20 Apr 2020) Joining the Energy Charter Treaty could cost developing countries money that is urgently needed to fight the COVID-19 pandemic and economic crisis, argue Pia Eberhardt, Cecilia Olivet and Faith Lumonya.
Pia Eberhardt, Cecilia Olivet and Faith Lumonya are researchers and campaigners with Corporate Europe Observatory (CEO), the Transnational Institute (TNI) and The Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI) Uganda.
In recent years, the Energy Charter Treaty (ECT) has become increasingly controversial. This international agreement dating from the 1990s grants corporations in the energy sector enormous power to sue states at international investment tribunals for billions of euros, for example, if a government decides to stop new oil or gas pipelines or to phase out coal.
The ECT’s potential to obstruct climate solutions such as the energy transition, lock-in failed energy privatisations, and undermine affordable energy prices means there is little to gain and much to lose for countries planning to join.
The European Commission partly agrees, considering the treaty “outdated” and “no longer sustainable”. Increasing numbers of experts are calling on EU member states to scrap the ECT because it threatens Europe’s Green Deal. Italy, one of the most sued countries under the ECT, has in fact already withdrawn from it.
EurActiv, 20 Apr 2020: Despite controversy, the Energy Charter Treaty is silently being pushed into Africa
