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Title:
RWE v. Kingdom of the Netherlands
Region:
Global
Data source:
Sabin Center
Reference number:
ICSID Case No. ARB/21/4
Abstract:
On February 2, 2021, German utility RWE filed suit against the Netherlands government under the Energy Charter Treaty alleging that the government failed to allow adequate time and resources to transition away from coal. The Energy Charter Treaty, signed by 55 Parties, aims to protect foreign investments in energy and allows foreign investors to to claim compensation through arbitration for unfair losses due to government regulation. The Netherlands government plans to phase out all coal-fired power plants by 2030. According to news reports, RWE alleges that this policy does not include adequate compensation to phase out or transition to biomass its coal-fired Eemshaven power plant in the Netherlands.

Key environmental legal questions:

Whether the Netherlands' plan to phase out coal by 2030 violates the Energy Charter Treaty.
Notes:
Suits against governments; Trade and Investment; Climate-justified measures