02/05/2022 (Agence Europe) – In its current form, the Energy Charter Treaty (ECT) is fundamentally at odds with the European Union treaties, concludes a report published, on Wednesday 27 April, by the environmental NGO ClientEarth. Conducted by two researchers from the University of Amsterdam, the study points in particular to the controversial ‘investor-state dispute settlement’ (ISDS) mechanism, which allows companies to sue ECT signatory states in private arbitration courts. While the Court of Justice of the EU has ruled that this mechanism is not applicable to disputes between EU investors and Member States (see EUROPE 12782/13), the report shows that companies are moving their headquarters outside the EU to escape the effect of the ruling. Like the majority of MEPs, ClientEarth calls on the EU and its Member States to collectively exit the Treaty (see EUROPE 12918/12). See the report: https://aeur.eu/f/1gc (DG)