The European Union’s Proposed Amendments to Article 10(1) of the ECT: Advancing or Undermining Its Ambitions for the Green Transition?

Abstract

This article considers the European Union (EU)’s proposed amendments to Article 10(1) (the fair and equitable treatment (FET) standard) of the Energy Charter Treaty (ECT), put forward in the context of the on-going ‘modernisation’ process of that treaty. The amendments proposed by the EU (which have now been agreed upon in principle by the Contracting Parties to the ECT) seek to narrow the current openended definition of the FET standard, and therefore may be seen to limit investor protection. This, in turn, may undermine the confidence of investors looking to invest in the EU at a time when billions of Euros in investment is required to power the green transition and meet the EU’s climate change objectives. This article considers whether the EU’s proposal to amend Article 10(1) of the ECT may be considered to advance or undermine those objectives.