1994 Energy Charter Treaty

The Energy Charter Treaty (ECT) established a transboundary cooperation framework for the energy industry. The ECT seeks to achieve energy security through the creation of non-discriminatory energy markets, balanced with the principles of sustainable development and sovereignty over energy resources. It aims to establish open and competitive energy markets through World Trade Organization rules with the trade of energy materials, final energy product and energy-related equipment. Furthermore, it applies the principles of national treatment and most favored nation treatment to protect foreign direct investment in energy against core political risks. Moreover, parties to the ECT are urged to pursue energy efficiency, while considering the precautionary principle and the polluter pays principle. The ECT also focuses on energy transit, or the trade and transportation of energy across jurisdictions, and dispute settlement including those between two state parties and investor-state disputes.