IISD developed a model inter se agreement to neutralize the ECT sunset clause

IISD has developed a model inter se agreement to neutralize the sunset clause between the EU and non-EU contracting parties of the Energy Charter Treaty. This model agreement is aimed at reducing legacy ISDS risks emanating particularly from fossil fuel investors affected by energy transition policies. While the UK-EU relations may be a likely place to start implementing such an agreement, the text is designed to be open for subsequent accessions by any other ECT contracting party. In practice, an inter se agreement could help prevent claims such as the one filed by UK-based electricity distribution investors against Finland that was registered by ICSID in August 2024.