The EC’s proposal aims to achieve greater legal certainty and clarity on the rules applicable to the protection of investments.
The EC adopted a draft mandate to partake in negotiations on behalf of the EU to modernise the Energy Charter Treaty, a plurilateral trade and investment agreement. The negotiations would result in a revision of certain provisions of the Treaty to reflect the EU’s reformed approach on investment protection, with the aim of ultimately achieving greater legal certainty and clarity on the rules applicable to the protection of investments.
According to the EC, since its establishment in the 1990s, the ECT provisions have hardly been revised. As a result, the set rules do not reflect modern standard in the area of investment protection and climate change mitigation.
The EC recommends that amendments include stronger provisions on sustainable development, climate change and the clean energy transition. The EC proposal for a recommendation for a Council Decision is available here.