The Role of the Energy Charter Treaty in Fostering and Promoting Energy Efficiency and Sustainable Development

Abstract

The paper aims to critically analyze whether the Energy Charter Treaty (hereafter “ECT”) can be considered a viable instrument to foster and safeguard the concept of sustainable development, whilst simultaneously promoting foreign investment. First, an overview of the investment protection regime under ECT will be set out, assessing whether or not the ECT ensures that investments are in line with environmentally sound practices. Secondly, this study examines whether references to energy efficiency and environmental concern could signify that this treaty does not only place importance on investment protection, but also considers energy efficiency an equally important objective.  Subsequently, this paper will argue that whilst the ECT can be read as promoting sustainable development, this goal is often not realized when the ECT provisions are applied in reality. Finally, the article will propose some reforms that could be made to the ECT which ensures observing key issue related to energy efficiency and sustainable development.