Connect with us

Published

4 years ago

on

Electricity transmission pylons beside the gas-fired power plant, operated by Uniper SE, in Irsching, Germany, on Wednesday, July 7, 2021.
Michaela Handrek-Rehle | Bloomberg | Getty Images

LONDON — The Energy Charter Treaty is not widely known, yet it’s feared the influence of this international agreement could be enough by itself to derail hopes of capping global heating to 1.5 degrees Celsius.

The ECT contains a highly contentious legal mechanism that allows foreign energy companies to sue governments over climate action that could hurt future profits.

These “corporate court” cases, sometimes referred to as investor-state dispute settlements, are highly secretive, take place outside of the national legal system and can often lead to far larger financial awards than companies might otherwise expect.

Five fossil fuel companies are already known to be seeking over $18 billion in compensation from governments over energy policy changes and most of these have been brought via the ECT.

For example, Germany’s RWE and Uniper are suing the Netherlands over coal phase-out plans and the U.K.’s Rockhopper is suing Italy over a ban on offshore drilling.

Not only do countries have to get out of that treaty, they have to torpedo it on the way out.
Julia Steinberger
Ecological economist and professor from the University of Lausanne

A spokesperson for Uniper told CNBC: “The Dutch government has announced its intention to shut down the last coal-fired power plants by 2030 without compensation.

“Uniper is convinced that shutting down our power plant in Maasvlakte after only 15 years of operation would be unlawful without adequate compensation.”

RWE said it “expressly supports the energy transition in The Netherlands. In principle, it also supports the measures to reduce CO2 associated with the law, but believes compensation is necessary.”

Rockhopper did not respond to a request for comment.

The number of these corporate court tribunals is expected to skyrocket in the coming years, a trend that campaigners fear will act as a handbrake on plans to transition away from fossil fuels.

Governments that are prepared to implement measures to tackle the climate crisis, meanwhile, could be hit with enormous fines.

“The Energy Charter Treaty is a real trap for countries,” Yamina Saheb, an energy expert and former ECT Secretariat employee turned whistleblower, told CNBC via telephone.

Saheb quit her role with the Secretariat in June 2019 after concluding it would be impossible to align the ECT with the goals of the landmark Paris Agreement. She said any attempt to reform or modernize the treaty would ultimately be vetoed since many member states are heavily reliant on fossil fuel revenues.

Thick smoke, cloud of water vapour comes out of the cooling towers of the lignite-fired power plant Weisweiler of RWE Power AG in Germany.
Horst Galuschka | picture alliance | Getty Images

“If we withdraw, we can protect ourselves, we can start implementing the climate neutrality targets and we can end the promotion of the expansion of this treaty to other developing countries,” Saheb said.

“I think the only way forward is to kill this treaty,” she added. “Either we kill this treaty, or the treaty will kill us.”

The ECT Secretariat was not immediately available to respond when contacted by CNBC.

The treaty has said its fundamental aim is “to strengthen the rule of law on energy issues by creating a level playing field of rules” that help to mitigate the risks associated with energy-related investment and trade.

Who’s involved and how does it work?

The ECT is a unique multilateral framework that applies to more than 50 countries — mostly in Europe and central Asia — and includes the European Union, the U.K. and Japan among its signatories. It is currently looking to expand to new signatory states, particularly in Africa, Asia and Latin America.

Signed in 1994, the ECT was primarily intended to help protect western companies investing in former Soviet Union countries in the post-Cold War era. It was also designed to help overcome economic divisions by ensuring a flow of western finance in the east through binding investment protection.

It has since been sharply criticized by more than 200 climate leaders and scientists as a “major obstacle” to averting climate catastrophe.

Dozens of people walk through water due to heavy rains causing flooding in Dhaka, Bangladesh on October 7, 2021.
Sumit Ahmed | Eyepix Group | Barcroft Media | Getty Images

“I think the treaty is probably by itself enough to kill 1.5 [degrees Celsius],” Julia Steinberger, ecological economist and professor from the University of Lausanne, told CNBC.

“I know that 1.5 is a very tight target and there are a lot of things that can blow it, but it is because it basically saves fossil fuel industries … from the financial collapse that they should face for their risky — and honestly criminal — investments in a harmful technology.”

Corporate court hearings brought via the ECT take place in private and investors are not obliged to acknowledge the existence of a case, let alone reveal the compensation they are seeking.

The average cost of investor-state dispute settlement cases is estimated at roughly 110 million euros ($123.9 million), according to an analysis of 130 known claims by think tank OpenExp, and the average cost of arbitration and legal fees is thought to be around 4.5 million euros.

International environmental law experts say that even the threat of legal action is thought to be highly effective in chilling domestic climate action — and fossil fuel companies are acutely aware of this.

That’s because governments may struggle to allocate resources to a single issue when accounting for other priorities. The threat of legal action becomes progressively more powerful as the budget of the country involved becomes smaller.

Notably, a ruling in favor of the state does not lead to zero cost for taxpayers because the defendant state must pay for legal and arbitration fees.

“Not only do countries have to get out of that treaty, they have to torpedo it on the way out,” Steinberger said. “And that’s something a unit the size of the European Union could do.”

A spokesperson for the EU was not immediately available to comment when contacted by CNBC.

The EU completed its eighth round of negotiations to modernize the ECT earlier this month, with the ninth round of talks scheduled for Dec. 13.

France, Spain and Luxembourg have all raised the option of withdrawing if the EU’s modernization efforts fail to conform to the Paris accord.

What happens if countries withdraw?

Italy withdrew from the ECT in 2016, but it is currently being sued because of a 20-year “sunset clause” which means it is subject to the treaty through to 2036.

Around 60% of cases based on the treaty are intra-EU, with Spain and Italy thought to be the most sued countries. Saheb said that given most of these cases are within the bloc itself, a coordinated withdrawal would likely kickstart a domino effect, with states such as Switzerland, Norway and Liechtenstein seen as likely to follow suit.

And if the bloc were to withdraw from the treaty collectively, member states could agree to remove the legal effects of the sunset clause themselves.

“That sunset clause is much longer than many sunset clauses in other treaties but is also completely incompatible with the notion that regulations need to evolve with the changing reality of climate change, to the changing demands of safeguarding the environment and human rights,” Nikki Reisch, director of the Climate & Energy Program at the Center for International Environmental Law, told CNBC.

“There’s a really strong case to make that the application or enforcement of that sunset clause is contrary to other principles of international law,” she added.

A view of open freight wagons full of coal under smog during a day that the level of PM2.5 dust concentration amounted to 198 ug/m3 on February 22, 2021 in Czechowice Dziedzice, Poland. The central eastern European country has the EU’s worst air, according to a report published by the European Environment Agency (EEA).
Omar Marques | Getty Images News | Getty Images

The European Court of Justice ruled in early September that EU energy companies could no longer use the treaty to sue EU governments. The verdict significantly limits the scope of future intra-EU cases and has thrown the legitimacy of a number of ongoing multi-billion-euro lawsuits into question.

“We are not out of the woods yet,” Reisch said. The ruling was an important step to blunting an instrument designed to protect fossil fuel investors, she said, but it does not take arbitration cases by investors domiciled outside of the EU off the table.

“We can’t let our ability to confront the greatest crisis that we have ever faced as humankind, arguably, be held hostage to the interests of investors,” Reisch said.

“I think it is just another reminder of the need to eliminate those legal structures and fictions that we’ve created that really do lock us into a bygone era of fossil fuel dependence.”

Related Topics:
Continue Reading

Environment

Elon Musk hypes Tesla’s 8th gen AI chip, but still hasn’t delivered promised self-driving on 3rd gen

Published

2 hours ago

on

November 3, 2025

By

Elon Musk hypes Tesla's 8th gen AI chip, but still hasn't delivered promised self-driving on 3rd gen

Tesla Full Self-driving computer

Elon Musk is now hyping Tesla’s 8th-gen AI chip, but he still hasn’t delivered the promised self-driving for millions of Tesla owners with the 3rd-gen chip, nor with the current 4th-gen chip in production.

Musk, whose compensation package at Tesla is up for a shareholder’s vote this week, has coincidentally been sharing more of what he does at Tesla lately to justify his upt to $1 trillion compensation package.

This weekend, he posted on X an update about Tesla’s AI chip roadmap:

Just finished a long AI5 design review with the Tesla California and Texas chip engineers. It’s going to be great. And AI6 and AI7 will follow in fast succession. AI8 will be out of this world.

Those chips power Tesla’s inference computing in its vehicles, enabling its advanced driver-assistance systems (ADAS) and self-driving capabilities.

Advertisement – scroll for more content

Currently, Tesla is producing AI4, its fourth-generation chip.

However, the automaker has been selling to customers the capability to achieve “Full Self-Driving” unsupervised capacity since its second-generation chip.

When it failed, it retrofitted second-gen cars with a new “HW3” third-generation chip.

In January, Musk admitted that Tesla’s HW3 in-car computer is not powerful enough to support unsupervised self-driving. He said Tesla would once again offer retrofits, but it’s been 10 months, and Tesla hasn’t communicated any concrete plan to make it right with customers.

During Tesla’s earnings call last month, Tesla partially walked back Musk’s previous admission that HW3 won’t support unsupervised self-driving.

CFO Vaibhav Taneja said:

“We’ve not completely given up on hardware 3.”

He didn’t really elaborate on what it means, but Tesla’s VP of self-driving, Ashok Elluswamy, added: 

“Once the v14 release series is fully done, we are planning on working on a v 14 Lite version for hardware 3. Probably expected in Q2 next year.”

V14 is currently available on Tesla vehicles with HW4, but it is still not capable of unsupervised self-driving as Tesla sold and promised to customers.

Electrek’s Take

It’s pretty wild that instead of delivering what it promised and sold to HW3 customers, Tesla now says that you might get a watered-down version of something else that is already available. And that’s going to be 6 months from now.

There’s moving the goal post, and then there’s throwing it away altogether.

Now, the fascinating thing is that Musk is talking about AI5, coming in 2026, then AI6. Now, he is even talking about AI7 and AI8.

We know what happens when Tesla launches a new self-driving computer. It gradually shifts its efforts into bigger models that fit on the new computer, but they don’t on the old one.

At this point, everything points to AI4 going the same way as HW3.

Tesla would have avoided itself a lot of headaches if it would have simply waited to have solved autonomy before selling it to customers.


Add Electrek as a preferred source on Google
Add Electrek as a preferred source on Google

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

The new Lexus RZ is here, but it still costs way more than a Tesla Model Y

Published

2 hours ago

on

November 3, 2025

By

The new Lexus RZ is here, but it still costs way more than a Tesla Model Y

New-Lexus-RZ-prices

Lexus upgraded the RZ in about way you could imagine. It can now drive over 300 miles on a single charge, recharge at Tesla Superchargers, and even has a sporty new F-Sport trim. Is it enough?

New 2026 Lexus RZ prices and range by trim

The new and improved Lexus RZ is now on sale in the US. Lexus revealed the refreshed electric SUV earlier this year, featuring more range, faster charging, additional features, and more trim options.

With a new battery system, the 2026 RZ now provides up to 301 miles of driving range, or 35 miles more than the outgoing model.

The new Lexus RZ can also recharge at Tesla Superchargers via its built-in NACS port. It can now charge from 10% to 80% in about 30 minutes using a DC fast charger.

Advertisement – scroll for more content

RZ drivers can use one of the more than 25,000 Tesla Superchargers, as well as other DC fast-charging networks such as IONNA, ChargePoint, and EVgo.

Other new features, such as Plug & Charge and Apple Maps EV Routing via Apple CarPlay, make it much easier to find and use public chargers.

Lexus introduced a new F Sport trim to the 2026 RZ lineup. Packing 402 horsepower from a dual motor powertrain, the 2026 Lexus RZ 550e is the most powerful RZ model yet. It also gains exclusive black F Sport badges on the rear spoiler, front and rear bumpers, and front grille.

The RZ 450e offers an optional performance upgrade that boosts output to 375 hp, good for a 0 to 60 mph sprint in 4.3 seconds. The upgrade costs an extra $1,750 and is available for installation at the dealer.

New-Lexus-RZ-interior
The interior of the 2026 Lexus RZ (Source: Lexus)

Lexus revamped the electric SUV’s interior with a new Dynamic Sky Panorama Glass Roof. The F-Sport trim features a Black Ultrasuede trim with blue stitching and added emblems on the pedals and footrests.

Starting at $47,295, the 2026 Lexus RZ is already $5,000 more than the outgoing model. It’s also over $7,300 more expensive than the Tesla Model Y.

2026 Lexus RZ trim Starting Price
(MSRP*)
RZ 350e $47,295
RZ 350e Premium $49,495
RZ 450e AWD $50,795
RZ 450e Premium AWD $52,995
RZ 450 e Luxury AWD $58,295
RZ 55e F Sport AWD $58,295
2026 Lexus RZ price by trim (*includes $1,295 delivery fee)

The 2026 Tesla Model Y Standard RWD is priced from $39,990 with an EPA-estimated driving range of 321 miles. Even the Premium trim, starting at $44,990, is less expensive.

Which electric SUV are you choosing, the new 2026 Lexus RZ or the Tesla Model Y? Let us know in the comments.

Want to test drive the Lexus RZ or Tesla Model Y to see for yourself? You can use our links below to see what’s available in your area.


Add Electrek as a preferred source on Google
Add Electrek as a preferred source on Google

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

Early Black Friday e-bike sales from Lectric and Heybike with up to $893 savings, EcoFlow 40A level 2 EV charger low, EGO, more

Published

3 hours ago

on

November 3, 2025

By

Early Black Friday e-bike sales from Lectric and Heybike with up to 3 savings, EcoFlow 40A level 2 EV charger low, EGO, more


We’re kicking off this week’s Green Deals with an EV-packed edition, led by Lectric’s early Black Friday Sale that is offering up to $893 in FREE bundled gear with e-bikes, like the XPedition 2.0 Cargo e-bikes that are getting some of the biggest packages up to $893 in size, starting from $1,399. That’s not all, as Heybike’s early Black Friday Sale is taking up to $600 off e-bikes with select bundles and FREE gift packs starting from $899 lows. There’s also EcoFlow’s PowerPulse Level 2 40A EV Charger and bundle starting from a $699 low, EGO’s 56V 12-inch cordless snow shovel, and several ongoing exclusive EcoFlow and Jackery power station lows – one of which has even fallen another $100 lower. And don’t forget about the hangover deals from last week that are collected together at the bottom of the page, rounded together in our latest edition of Electrified Weekly.

Head below for other New Green Deals we’ve found today and, of course, Electrek’s best EV buying and leasing deals. Also, check out the new Electrek Tesla Shop for the best deals on Tesla accessories.

Lectric e-bikes lined up in early Black Friday promotional image

Lectric’s early Black Friday Sale offers up to $893 bundles with e-bikes starting from $999

The month is kicking off big for folks looking to score a commuting solution from one of America’s favorite e-bike brands. Lectric eBikes has launched its early Black Friday Sale that is seeing up to $893 in savings across the e-bike lineup, including another $500 price cut on the premium ONE commuter and up to 25% discounts on accessories. Leading the group with some of the biggest bundles are Lectric’s XPedition Cargo e-bikes, which can be broken down into three configurations: the starting 13Ah single-battery e-bike with $346 in gear at $1,399 shipped, the 26Ah dual-battery e-bike with $744 in gear at $1,799 shipped, or the 35Ah dual-battery long-range e-bike with $893 in gear at $1,999 shipped. These bundles would normally run you $1,745, $2,543, and $2,892, respectively, but now, you’re getting the largest packages we’ve tracked since this second-generation hauler hit the market one year ago.

The bundles we’re seeing are mostly focused on passenger comfort and safety, with parents and nannies in NYC often using them to shepherd kids around to their daily appointments. The base 13Ah single-battery model is getting a pair of running boards, cushions, a suspension seat post, and an Elite headlight upgrade. The 26Ah dual-battery model is getting those with an orbiter, extra cushion, and two XL pannier bags, while the 35Ah dual-battery model is adding a fast charger that refills the battery in up to 3.5 hours.

Advertisement – scroll for more content

The Lectric XPedition 2.0 e-bikes are popular haulers that have regularly sold out of stock over 2025, as they carry a total 450-pound payload with an extended cargo rack and can carry precious cargo for up to 170 miles. Regardless of your battery configuration, they come with 750W M24 rear hub motors (peaking at 1,310W) that reach up to 20/28 MPH top speeds, depending on your state-specific laws. The 13Ah battery model provides pedal assistance for up to 60 miles, the 26Ah battery model extends that up to 120 miles, and the 35Ah battery model goes the distance for up to 170 miles.

Along with all the free gear you’re getting, these e-bikes also come stocked with dual spring front suspension forks, hydraulic mineral oil disc brakes, headlights and taillights that provide turn signaling and brake activation, a color display, and more.

Lectric early Black Friday XPedition 2.0 e-bike bundles:

Lectric early Black Friday ONE e-bike bundle + price cut:

Lectric early Black Friday XPeak 2.0 e-bike bundles:

Lectric early Black Friday XP Trike2 bundles:

Lectric early Black Friday XP4 e-bike bundles:

Lectric early Black Friday XP Lite 2.0 LR e-bike bundles:

Lectric early Black Friday XPress 750 e-bikes bundle:

electric vehicle in garage charging from EcoFlow PowerPulse Ev charger

You can save up to $2,498 on EcoFlow’s PowerPulse level 2 40A EV charger and bundles starting from a $699 low

EcoFlow is currently offering its PowerPulse Level 2 40A EV Charger at $699 shipped, while bundles are also seeing up to $2,498 discounts. This new charging solution was released back in June with a full $899 price tag, which we’ve been seeing drop down to $699 over the last four months. The deal here is giving you another chance at $200 starting savings on the charging station alone, which can connect to power stations and the brand’s home backup units at the best price we have tracked.

If you want to learn more about this EV charging solution, as well as view the lineup of bundle offers, be sure to check out our original coverage of these deals here.

man riding Heybike e-bike in early Black Friday promotional image

Get up to $600 early Black Friday savings on Heybike e-bikes with FREE gifts and bundled gear starting from $899 lows

Heybike has launched its Early Black Friday e-bike Sale with up to $600 price cuts, limited FREE gifts, and select bundle packages. Leading the group at its lowest price is Heybike’s Mars 2.0 Folding Fat-Tire e-bike that gets a FREE gift for $899 shipped, or you could upgrade to its 1,000W motor configuration for $100 more. It’s coming down off its $1,499 full price during this event, which we’ve been seeing keep between $999 and $1,099 since July, which is when we last saw it fall to this all-time low rate. Now, you can hop on with $600 savings and get a FREE Black Friday gift pack too – all at the best price we have tracked in its history.

If you want to learn more about this e-bike, or browse the entire lineup of deals, be sure to check out our original coverage of this early Black Friday sale here.

EGO's 56V 12-inch cordless snow shovel

Add EGO’s 56V 12-inch cordless snow shovel to your winter arsenal with a 2.5Ah battery at $270

Amazon is offering the EGO Power+ 56V 12-inch Cordless Snow Shovel with 2.5Ah battery at $269.99 shipped. Since late July it’s been keeping at its $359 full price, which we’ve seen taken as low as $264 back in May and June. You’re looking at a 25% markdown here while this deal remains, giving you $89 cut from the tag and landing it amongst the lowest prices we have tracked – just $6 above its low.

If you want to learn more about this snow-clearing solution, be sure to check out our original coverage of this deal here.

Best Fall EV deals!

Best new Green Deals landing this week

The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.


Add Electrek as a preferred source on Google
Add Electrek as a preferred source on Google

FTC: We use income earning auto affiliate links. More.

Continue Reading

Trending