Energy Efficiency and the Energy Charter Treaty

Abstract

Until recently the promotion of energy efficiency has been seen to be a matter exclusively for domestic law. Previous writings have concentrated on possible reforms to Commonwealth and State law designed to improve energy efficiency in various sectors of the economy. The Framework Convention on Climate Change, adopted at the Rio UNCED conference in J 992, provided the first major indication that energy efficiency could enter the realm of public international law. The world still awaits more concrete legal obligations as to climate change. In the meantime, the role of international law in promoting energy efficiency has received a boost from a previously unanticipated source, the Energy Charter Treaty and its associated Protocol on Energy Efficiency. Australia is a signatory to both agreements. This Treaty was originally designed to promote investment and energy trade between developed countries and countries of eastern Europe and the former Union of Soviet Socialist Republics, and its initial draft contained scant reference to environmental issues. However, the Treaty and Protocol in their final form contain significant environmental content and represent an exciting development in the drive towards energy efficiency. This article examines the background to and the relevant environmental terms of the Treaty and Protocol. It analyses the strength and weakness of the provisions and concludes by discussing possible and desirable future developments in the realm of public international law to promote energy efficiency.