The European Union Proposal for the Modernisation of the Energy Charter Treaty – A Model for Climate-Friendly Investment Treaties?

Abstract The Energy Charter Treaty (ECT), which provides for an investment protection regime in the energy sector, has been undergoing a modernisation process. European Union (EU) submitted proposal with focus on aligning ECT Paris Agreement. This article explores whether EU proposal, is largely reflected agreement principle of ECT, constitutes model climate-friendly treaty. It analyses aspired phase-out fossil fuels, right to regulate, fair and equitable treatment sustainable development chapter together its State-to-State dispute settlement mechanism. Given fuel protection, argues that too restrictive investors. At same time, provisions regulate are not innovative enough treaty, although mechanism holds potential inter-State climate litigation.