The Energy Charter Treaty (ECT) is an investment agreement between 50 countries specifically for the energy sector. It dates back to the mid 1990s, from a time when the focus was on access to oil and gas reserves in countries of the former Soviet Union, and levels of climate ambition were not high.

At the core of the ECT is the contentious investor-state dispute settlement (ISDS) mechanism. This allows foreign companies to sue governments outside of the national legal system in secretive tribunals. The amounts at stake can be in the billions. The ECT has already generated at least 135 claims, making it the world’s most litigated ISDS agreement. In 2023, Ireland faced a first ever ISDS claim when Lansdowne Oil and Gas, registered in UK, used the ECT to bring a claim against the Irish government over its decision not to grant permission to develop the Barryroe oil field.

The Treaty has been subject to reform efforts in recent years, but these ground to a halt in November 2022 after a number of EU countries have declared that even the reformed treaty would be incompatible with their climate goals. Nine EU countries – Germany, France, Spain, Italy, Luxembourg, Slovenia, Poland, Denmark and the Netherlands have already left or announced their intention to leave the treaty. The governments of Austria and Portugal are also said to support withdrawal.

The Irish government has indicated support for a coordinated withdrawal from the Energy Charter Treaty, but has not taken any steps to leave the treaty, or even announced their position formally. Ireland should take the decision to leave the Energy Charter Treaty, even if a coordinated withdrawal cannot be achieved. It is the most effective way to protect taxpayers, the planet and our future from this damaging treaty.