2022 Reports

The Agreement in Principle on ECT “Modernization”: A Botched Reform Attempt that Undermines Climate Action

Brauch, Martin Dietrich

Seeing the Agreement in Principle on Energy Charter Treaty (ECT) “modernization” and its leaked full text, the “modernization” misnomer can safely be abandoned. The renegotiated ECT does not rise to the mounting global challenges regarding energy investment, climate action, and sustainable development. The ECT reform process missed the mark in nature, scope, ambition, and speed to address the ECT’s risks for and negative impacts on the Sustainable Development Goals (SDGs), particularly SDG 13 (Climate Action), and Paris Agreement goals and commitments. The proposed ECT amendment would continue to make it difficult and costly for governments to adopt urgently needed climate policy. Withdrawing from the ECT—Poland and Spain are taking steps to do so—and neutralizing the survival clause to the extent possible continues to be the best strategy.