Energy Charter Treaty

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Publication Date 2019-
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Overview and information relating to the Energy Charter Treaty.

Further information:

The Energy Charter Treaty provides a multilateral framework for energy cooperation that is unique under international law. It is designed to promote energy security through the operation of more open and competitive energy markets, while respecting the principles of sustainable development and sovereignty over energy resources. The roots of the Energy Charter date back to a political initiative launched in Europe in the early 1990s. There was therefore a recognized need to ensure that a commonly accepted foundation was established for developing energy cooperation between the states of the Eurasian continent. On the basis of these considerations, the Energy Charter process was born.

The Energy Charter Treaty and the Energy Charter Protocol on Energy Efficiency and Related Environmental Aspects were signed in December 1994 and entered into legal force in April 1998. The Treaty was developed on the basis of the Energy Charter Declaration of 1991.

The Treaty’s provisions focus on five broad areas: the protection and promotion of foreign energy investments, based on the extension of national treatment, or most-favoured nation treatment (whichever is more favourable); free trade in energy materials, products and energy-related equipment, based on WTO rules; freedom of energy transit through pipelines and grids; reducing the negative environmental impact of the energy cycle through improving energy efficiency; and mechanisms for the resolution of State-to-State or Investor-to-State disputes.

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The Energy Charter Treaty: Texts and Provisions

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