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Approved topics for the modernisation of the Energy Charter Treaty

After consultations (with the industry and Observers) and internal discussions during 2018 conducted by the Chair and Vice-Chair of the Subgroup on Modernisation (Ms. Sofía Sanz Estébanez and Mr. Sunao Orii), on 27 November 2018 the Energy Charter Conference approved the list of topics for the discussion on the modernisation of the ECT:

  • Pre-investment
  • Definition of ‘charter’ 
  • Definition of ‘economic activity in the energy sector’ 
  • Definition of investment 
  • Definition of investor 
  • Right to regulate 
  • Definition of Fair and Equitable Treatment (FET) 
  • MFN Clause
  • Clarification of ‘most constant protection and security’
  • Definition of indirect expropriation 
  • Compensation for losses 
  • Umbrella clause 
  • Denial of benefits 
  • Transfers related to investments 
  • Frivolous claims 
  • Transparency 
  • Security for costs
  • Valuation of damages
  • Third party funding
  • Sustainable development and corporate social responsibility
  • Definition of ‘transit’
  • Access to infrastructure (including denial of access and available capacities)
  • Definition and principles of tariff setting
  • REIO
  • Obsolete provisions 

The Subgroup on Modernisation will continue working in order to identify the potential policy options for each of the topics listed (including the context and the potential instrument to be used –clarification or amendment–). It is expected that the current main international trends will be used as a primary reference. Once the policy options have been identified, Members of the Conference will be invited to confirm (if possible during the 2019 review under article 34.7 of the ECT) their political will to start negotiations based on the identified list of topics and their specific policy options.

Countries, international organisations, industry, academics and other stakeholders are invited to the conference on the 20th anniversary of the entry into force of the ECT to reflect on the lessons learned, objectives achieved and challenges ahead; in particular, the Modernisation of the ECT.  Registration at by 10 December.