Coal ransom: How the Energy Charter Treaty drove up the costs of the German coal phase-out

Type: Campaign briefings
Date: 22 April 2022
Campaigns: Climate, Trade

The risk of being sued in ‘corporate courts’ in the Energy Charter Treaty drove up the cost of the coal phase-out in Germany up to twelve times. This is a threat to climate action.

Fossil fuel companies RWE and LEAG eventually gave a legal commitment to the German government that they would not use the ECT, and the shockingly increased price tag is in exchange for this waiver. 

This briefing explains the background, what happened in the negotiations and the problems with the Energy Charter Treaty. It is essential that governments exit the Energy Charter Treaty to ensure that it does not similarly cause problems for other governments seeking to meet their climate commitments and transition away from fossil fuels.