The Energy Transition Beyond the Energy Charter Treaty: Adapting to Climate Change

This edited collection draws on scholars from all over the world to consider the trajectory of the Energy Charter Treaty (ECT) from its historical origins to the present day. Initially signed in 1994 to foster cross-border cooperation in the energy sector, particularly in the fossil fuel industry, the ECT was a cornerstone for regulating energy trade, investment protection, and dispute resolution. The treaty, however, has become the subject of increasing disillusionment in recent years, as its provisions appear incompatible with the urgent demands of the energy transition and the commitments of states under international environmental agreements, such as the Paris Agreement. The edited book will discuss the growing disillusionment with the treaty, the attempts at its modernisation and the ultimate withdrawal of key signatories. The book begins by tracing the historical context and the geopolitical motivations that underpinned the formation of the ECT, exploring its significance in stabilising the energy sector in Europe and beyond. It then delves into the growing discontent with the treaty, examining key moments of friction, including disputes over renewable energy subsidies and the perceived inadequacies of the ECT in facilitating a shift towards sustainable energy sources.

The focus of the book is on the implications of the withdrawal from the ECT for the regulation of the energy sector generally and the protection of investments in energy projects specifically. The book then turns, in the final section, to discuss the future of energy regulation, not just in the EU, but internationally. Specifically, it considers the potential for the regulatory vacuum to be filled with bilateral investment treaties as well as other multilateral investment treaties, and even the potential for an international energy charter. Key topics include the potential for bilateral and multilateral investment treaties (BITs and MITs) to fill this regulatory gap and the challenges these frameworks face in addressing the unique complexities of the energy transition. Comparative case studies from Sub-Saharan Africa and the Asia-Pacific provide insights into alternative regulatory models that may offer lessons for post-ECT governance. In sum, this edited book brings together a range of expertise to showcase the main regulatory challenges that accompany withdrawal from the ECT, both for the EU, and for the world more broadly.