KAMPALA– Various stakeholders from East African Community members states have urged leaders for all members states that have not ratified the Energy Charter Treaty (ECT) to think twice before signing this treaty.
Mercy Grace Munduru, head of programs Action Aid International Uganda(middle) with two officials from Action Aid Kenya in Kampala on Thursday.
In a consultation meeting organized in Kampala by Action Aid International Uganda , SEATINI Uganda and other partners, the participants noted that the brains behind this treaty are fronting mostly its positive benefits yet it has a lot of negative effects which are a threat to the economy of these countries as well as human rights.
Hon Christine Kaaya Nakimwero, Kiboga District Woman Member of Parliament pointed out that its risky for Uganda to sign a treaty which power full countries like the United Kingdom and the European Union are no longer interested in.
“The Minister for energy shouldn’t hurriedly sign the treaty because it emphasizes the use of external mechanism in conflict resolutions which gives investors a chance to use their home laws in addressing cases brought against them. This is alone is very dangerous since it doesn’t guarantee citizens justice.”
She also added the aims and objectives of the treaty don’t align with most of the East African countries.
“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.”
She further advised people 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 foreigners.
Hon Emmanuel Otada , the member of Parliament for West Budama constituency , during this engagement that although the framers of this treaty what Ugandans to believe that its aimed at improving people’s welfare, they should not forget that its mainly target the African’s oil and other minerals.
Mercy Grace Munduru, the head of programs and fundraising at Action Aid international Uganda noted that the 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 are at a time in our history where we have two choices. 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.”
Herbert Abigaba , the Principal Energy Officer from Minsitry of Energy and Mineral Development 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.”
About ECT
The Energy Charter Treaty (ECT) is an International agreement which establishes a multilateral framework for cross border cooperation in the energy industry, principally the fossil fuel industry.
The treaty was signed in December 1994 and entered into legal force on April 16th 1998.
On May 20th 2015, the energy Charter Secretariat negotiated international Energy Charter (IEC).
The Treaty’s provisions target investment protection, Liberalization of trade, freedom of transit , dispute settlement and environmental aspects.
Uganda’s status
The country signed a non binding IEC as a demonstration of political commitment in 2015 making the first step towards acceding to the ECT.
Uganda took a step further towards ascending to the ECT in 2019 by sending an Accession intention letter to the Secretariat of the ECT.
Risks associated with ECT
Investors are favored by International arbitration tribunals to persue legal action against governments to resolve disputes.
Governments can be sued for up to 20 years even after withdrawing from the ECT under the Zombie clause.
Costly suits in favor of powerful fuel companies as of 2018, ECT tribunals had awarded more than US $ 51.2 billion.
Protection of investments in fossil fuels , which has implications on global climate action , the environment and clean energy transition.
