Major foreign investments in the fossil fuel sector flow between the European Union (EU) and other contracting parties of the Energy Charter Treaty (ECT). This brief demonstrates that an inter se modification of the ECT to neutralize its survival clause complies with the law of treaties and would prevent such investments from generating investment arbitration risks in the future. It also proposes a model inter se agreement that can be used as a basis for negotiation.
Authors
- Pages
- 17
- Published in
- Canada
- Rights
- IISD, 2024
Table of Contents
- PART I: Introduction 4
- 1. Advantages of This Model Agreement 5
- 2. The Modification of the ECT Complies With the Law of Treaties 5
- a. The Modification Is Not Prohibited by the ECT – First Condition Fulfilled 6
- b. The Modification Does Not Affect Third-Party Rights and Obligations Under the Treaty – Second Condition Fulfilled 7
- c. The Modification Does Not Relate to a Provision, Derogation From Which Is Incompatible With the Effective Execution of the Object and Purpose of the ECT as a Whole – Third Condition Fulfilled 7
- PART II: Agreement on the Inter Se Modification of the Energy Charter Treaty 10
- References 15
