On the 2 September 2021, in Moldavia/Komstroy (C-741/19), the CJEU ruled that the ISDS under the Energy Charter (ECT) was incompatible with EU law. In effect, investment tribunals established under the Energy Charter can interpret EU law, but cannot cooperate with the ECJ, which is the only Court that can interpret EU law, including the ECT. The fact that the EU is a party to the ECT and therefore bound by it makes no difference. However, according to its critics, the ISDS clause in the ECT could jeopardize the 2050 carbon neutrality target.
de Sadeleer, N. (2022). Sustainability Lunchtime Seminars: Where Environmental Law Meets Economic Law. Sustainability Lunchtime Seminars: Where Environmental Law Meets Economic Law, University of Luxemburg. https://hdl.handle.net/2078.5/165212