Inside Arbitration: The Ect Exodus – Politics And Unintended Consequences (Video)

With a host of states to leave the Energy Charter Treaty amid climate concerns, we explore what the flashpoint means for multilateralism and the energy transition

Once a mainstay of international energy markets, the Energy Charter Treaty (ECT) has become mired in controversy, with Poland, Spain, the Netherlands, France, Belgium, Slovenia, Germany and Luxembourg having all recently announced their intention to withdraw from the agreement. At the centre of the controversy are arguments that the multilateral framework initially dominated by fossil fuels is restricting states' ability to robustly tackle climate change.

This article provides a refresher on the ECT, an outline of the debate surrounding the treaty, our take on the rationale of the exiting states and final thoughts on what this means for the energy transition.