A controversial investment treaty is quietly moving from Europe to Africa
Drilled has been tracking a story that deserves far more attention than it gets. The Energy Charter Treaty, a 1994 mechanism that allows fossil fuel companies to sue governments in private tribunals when climate regulations cut into their profits has been abandoned by most of Europe over the past two years. Germany, France, Spain, the UK, the EU itself: all out. But the ECT Secretariat hasn't wound down. It's pivoted, actively courting African nations to join, meeting with government officials in Nigeria, Senegal, Uganda, and elsewhere, and framing membership as a solution to energy poverty. Civil society groups on the ground are alarmed. Uganda carries public debt at 52% of GDP. These are not governments that can easily absorb costly international arbitration brought by fossil fuel investors. There's also a newer dimension worth watching: Investor-state Disputed Settlement claims involving critical minerals lithium, copper, and cobalt (that the energy transition depends on) are rising. The communities most likely to face the next wave of corporate legal action may be those sitting on the resources the green economy needs most. It's a pattern worth understanding if you work in climate finance, policy, or just care about who gets to make decisions about the energy transition and who doesn't. 👉 Read moreDrilled has been tracking a story that deserves far more attention than it gets. The Energy Charter Treaty, a 1994 mechanism that allows fossil fuel companies to sue governments in private tribunals when climate regulations cut into their profits has been abandoned by most of Europe over the past two years. Germany, France, Spain, the UK, the EU itself: all out. But the ECT Secretariat hasn't wound down. It's pivoted, actively courting African nations to join, meeting with government officials in Nigeria, Senegal, Uganda, and elsewhere, and framing membership as a solution to energy poverty. Civil society groups on the ground are alarmed. Uganda carries public debt at 52% of GDP. These are not governments that can easily absorb costly international arbitration brought by fossil fuel investors. There's also a newer dimension worth watching: Investor-state Disputed Settlement claims involving critical minerals lithium, copper, and cobalt (that the energy transition depends on) are rising. The communities most likely to face the next wave of corporate legal action may be those sitting on the resources the green economy needs most. It's a pattern worth understanding if you work in climate finance, policy, or just care about who gets to make decisions about the energy transition and who doesn't. 👉 Read moreExpert summary pending. Showing the newcomer version.