- Uganda Govt should not hurriedly sign the treaty
- The treaty should be presented to parliament for scrutiny
- Three European country have so far withdrawn from the treaty
Various stakeholders from East African Community member states have urged governments within the member states including Uganda to think twice before signing the Energy Charter Treaty (ECT) as most of country that had signed it have started withdrawing
In a consultation meeting organized in Kampala by Action Aid International Uganda, participants have noted that the brains behind this Treaty are fronting mostly its positive benefits yet it has a lot of negative effects.
Hon. Christine Kaaya Nakimwero, Kiboga District Woman Member of Parliament while deliberating on the implications of this charter she pointed out that it is risky for Uganda government to sign this treaty, and called up on the ministry of energy to present the treaty to parliament for scrutiny.
‘’Since 2019, we see our minister in the ministry of energy are almost through with committing Uganda to such a treaty where most developed country are again withdrawing. We have been reviewing this treaty and for sure it does not allow us to sustainably using our resources. one as Uganda challenges with our ratification of the treaty’s Act, that it gives the president a lot of powers to ratify conventions, treaties, protocols on our behalf without parliamentary clearance which is really very sad for the global rights campaign and the need for parliament to intervene in many of the country’s actions’’. She spoke
According to her, before it is ratified, as leaders and stakeholders have the role to inform and advocate that the minister or president does not hurriedly sign the treaty. ‘’ why? the treaty talks of using external mechanisms in conflict resolution which is a challenge that the investors when they come here, they will use their back home mechanisms for conflict resolution other than using our own. So even when you have issues with investors in energy and oil extraction, you are not going to use Ugandan laws, you must use their laws. Then does not give us freedom to amend some of these provisions. Once you join and later decide to quit, you are supposed to suffer for additional 20 years after you have closed the relationship under this treaty’’. Hon. Nakimwero stated during the meeting.
The Energy Charter Treaty (ECT) is a multilateral agreement that provides a binding framework for energy cooperation. The ECT was signed in December 1994 and has been in force since April 1998. It is complemented by the European Energy Charter (1991) and the International Energy Charter (2015), which are non-binding political declarations setting out the goals of the Energy Charter process.
Hon. Nakimwero added that "Globally the focus is on reducing the use of fossil fuel and in Uganda we have a lot of renewable options. The treaty is too much on fossil fuel which is against the global target. People should not to be deceived by the alleged employment opportunities which comes with signing of this treaty because in most cases, these come with restrictions which Favors mostly the foreigner investors in this sector.
In her submission during the meeting, Mercy Grace Munduru, head of programs and fundraising at Action Aid international Uganda-AAIU noted that the Energy Charter Treaty- ECT prioritizes interests of investors thus causing a threat to people's rights violations. ‘’The Energy Charter treaty exists to protect the interest of foreign investors. We have a choice to put our interests at the fore front of what we do, or to put the interests of our country before all else’’. Munduru said.
Herbert Abigaba, the Principal Energy Officer from Minsitry of Energy and Mineral Development noted that after several consultations, the government of Uganda decided to halt its plans to sign the treaty.“We had signed the documents but after consultations with partners and other stake holders, we decided to withdraw and remain on observation role of the treaty.” He added.
More than three European countries withdrawn from the ECT
As of January 2024, France, Germany and Poland have officially withdrawn from the Energy Charter Treaty (ECT). Their decision to withdraw from the treaty follows a recent European Commission proposal for a mass exodus from the ECT by EU member states, which effectively will limit protections granted by the treaty previously enjoyed by direct investors and asset managers with portfolio companies in the energy sector
What is the ECT?
The ECT came into force in 1998. The treaty is designed to provide a framework for energy cooperation and promote energy security through open and competitive energy markets. Under Article 26, investors that are nationals of an ECT signatory state can bring claims against another ECT signatory state for violation of its obligations to promote and protect energy-related investments (see ECT Section III).
To this date, the ECT counts 50 members including the European Union and Euratom. The United States is not a member of the ECT.
Who is withdrawing from the ECT?
After Russia’s withdrawal from the ECT in 2009 and Italy’s exit in 2016, several countries followed suit. In 2022, Spain, the Netherlands, and Slovenia announced their intention to leave the ECT. Denmark, on April 13, 2023, became the eighth country to officially announce its withdrawal from the ECT. On July 7, 2023, the European Commission proposed the withdrawal of the EU and its member states. Shortly thereafter, on July 21, 2023, Portugal, became the first country to echo the European Commission’s proposal by indicating it was considering withdrawing from the treaty. Further withdrawals are scheduled for 2024. France, Germany and Poland have already exited the treaty and Luxembourg’s withdrawal will be effective in mid-2024.