AFTINET | 16 September 2019
Netherlands faces ISDS threat after decision to ban coal-based power generation by 2030
German company Uniper has threatened to bring an ISDS case against the Dutch government after a decision to ban coal-based power generation by 2030. The ban would force Uniper to close its coal-fired plant that was opened in the Netherlands in 2016. The plant has an expected lifespan of 40 years. The company has now threatened an ISDS case against the Dutch government if it goes ahead with the ban, reportedly arguing that a government proposal that the company switch to biomass is not viable.
If Uniper proceeds with the case, which would be taken under the Energy Charter Treaty, it would be the first known ISDS case taken against the Netherlands. However, other investors, including German energy company RWE, are also reportedly seeking compensation. Although is not clear whether they are also considering taking an ISDS case under the Energy Charter Treaty.
The controversial Energy Charter Treaty has triggered more ISDS claims than any other trade and investment agreement.