Energy Charter Treaty: Commission asks for mandate to negotiate modernisation of investment provisions

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The Commission today adopted a draft mandate to engage on behalf of the European Union in the negotiations  to modernise the Energy Charter Treaty (ECT), a plurilateral trade and investment agreement applicable to the energy sector to which the EU is part. These negotiations aim to revise the provisions of the Treaty in a way to reflect the EU’s reformed approach on investment protection and achieve greater legal certainty and clarity of the rules applicable to the protection of foreign investments. Among other elements, the Commission recommends the inclusion of an explicit provision on the right of States to regulate, a closed list of circumscribed cases constituting a breach of fair and equitable treatment, more clearly defined rules on expropriation and stronger provisions on sustainable development, climate change and the clean energy transition. As part of its commitment to transparency, the Commission is publishing its draft proposal, at the same time as submitting it to EU Member States for adoption. For more information, see a news item, Commission’s proposal and other resources on EU modern investment protection approach.

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