Energy Transition in Europe | www.energy-cities.eu

German energy company Uniper has confirmed its intention to sue the Dutch government over the country’s planned coal phase-out, in what will be the second legal challenge filed against the Netherlands this year under the controversial Energy Charter Treaty.

Amidst growing concerns that the Energy Charter Treaty (ECT) undermines urgent climate action, and a growing backlash against the treaty, its profiteers are spewing propaganda, promoting falsehoods about how the ECT attracts clean investment and how its 'modernisation' will fix any flaws. Cut through their rhetoric with our new myth-busting guide.

Europe has to cut almost all greenhouse gas emissions by 2050. That is going to be hard enough. But the little-known Energy Charter Treaty could become a massive threat to the EU and its member states in trying to achieve their climate targets. With this treaty, the contracting parties (including all EU member states except Italy) guarantee foreign investors far-reaching rights. If, in the Energy investor's opinion, a government has violated the principle of "fair and equitable treatment," they can sue states before international arbitration courts for billions of Euros in compensation. The treaty was signed in the 1990s to offer protection for Western companies investing in energy initiatives in former Soviet states, as many of these were deemed risky for potential investors. But today it is mainly used by European companies to sue European states. In the years to come the threat of ECT lawsuits could prevent states from adopting ambitious climate policies – or put plainly: this is already happening.