Greta Thunberg’s Arrest Demonstrates Why Energy Charter Treaty Must Be Abolished

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Greta Thunberg’s Arrest Demonstrates Why Energy Charter Treaty Must Be Abolished
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The treaty allows fossil fuel companies to sue governments for taking action to combat climate change.

But it’s not just the thousands of cops — or even the entire German state — that is shielding the fossil fuel industry’s wanton destruction. An obscure mechanism of international law quietly protects their interests and helps them extract more profits: the Energy Charter Treaty .

The Dutch state inaugurated the investor-state dispute settlement mechanism in the 1968 treaty between the Netherlands and Indonesia. ISDS allows a foreign investor to sue a country for certain decisions or actions that might negatively impact its investment in that country. If investors believe government measures endanger their current — or even potential future – profits, they can demand compensation under the treaty. RWE, which is now demolishing Lutzerath in order to extract more brown coal, launched aagainst the Netherlands in 2021 for its ‘coal exit’ law, which would end the burning of coal for electricity in 2030. The case is currently suspended until summer awaiting the decision of the German Supreme Court, which is expected in April.

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