Energy & transport international relations

The Energy Charter Treaty entered into force in April 1998, providing legally binding rules for trade, transit and investment in the energy sector, including provisions for the settlement of disputes. The investment protection provisions, with powerful dispute settlement provisions which are increasingly used by investors, are of particular significance. There is also a Protocol on Energy Efficiency and Related Environmental Aspects, providing a framework for cooperation on energy efficiency.

To date, the Treaty has been ratified by all EU Member States and the European Communities as well as by twenty other countries covering Europe including South East Europe, Turkey, Georgia, Armenia, Ukraine and Moldova, the Central Asian states, Pakistan (currently finalising ratification), Mongolia and Japan. Australia, Belarus, Iceland, Norway and the Russian Federation also signed the Treaty at the ceremony in Lisbon on 17 December 1994 but have not to date ratified it⁽¹⁾. A significant number of countries are observers to the Charter process and may seek accession to the Treaty in due course.

For the European Communities and Member States, the Energy Charter Treaty and process provides a very useful instrument for energy trade and investment relations with third countries and a forum for discussions and exchanges on energy policies and practices. This is of particular interest with respect to the third countries neighbouring the EU or with significant energy relations and complements the EU's own bilateral frameworks.

The governing body for the Energy Charter process is the "Charter Conference" which comprises representatives of each Contracting Party, including the Commission on behalf of the European Communities, and normally meets once a year. The Energy Charter Secretariat, based in Brussels, carries out the tasks assigned to it under the Treaty and by the Charter Conference, including notably the annually agreed Work Programme. Representatives of the countries participating in the Charter process, including the Commission on behalf of the European Communities, meet regularly at the Secretariat's premises in the various working groups to discuss energy policies and activities. Negotiation of a Transit Protocol under the Charter's auspices has also been ongoing since 2000, though agreement has not to date been achieved.

In addition to its extensive publications, the Charter Secretariat organises workshops and conferences, often in conjunction with other international organisations. Further information on the Energy Charter process and the activities of the Charter Secretariat may be obtained on their website, at www.encharter.org

⁽¹⁾ Australia, Iceland and Norway also deposited a declaration that they were not able to accept provisional application of the Treaty.