Young Europeans challenge protection for fossil fuel companies

Five young European citizens have approached the European Court of Human Rights arguing that the protection of companies in the fossil fuel sector granted by the Energy Charter Treaty acts against the objectives of the Paris Agreement.

But after all, what is the Energy Charter Treaty?

It is an international agreement, designed in the 90s, that provides legal protections for investments in fossil fuels. It allows business entitiesariaCompanies that invest in infrastructure and materials for energy production purposes, such as coal mines and oil fields, can sue governments over their climate policies. In practice, the Treaty authorizes sanctions against countries that, by adopting more sustainable energy policies, may have harmed the profits of the most polluting companies in the sector.

Curatorship Curto:

• Read the French report Le Monde about the case (translated into Portuguese).
• To better understand how the mechanism that allows companies to file lawsuits against countries works, access the platform Exchange.
• In 2021, the European Court of Justice ruled that company lawsuits against states were not compatible with European Union law. Understand the decision and its implications on the institution’s page (translated into Portuguese) ClientEarth.