Abstract
The polarity of arguments is significant among EU Member States, EU institutions, and scholars on the modernisation outcome of the Energy Charter Treaty (ECT). The principal disagreement is whether the modernised agreement aligns with the Paris Agreement and meets the goals of a ‘just transition’. The modernised treaty, as a first investment treaty, has introduced a flexibility mechanism to end the protection of fossil-fuel related investments. The article aims to analyse the draft reformed treaty from a conceptual perspective, aiming to contribute to an understanding of the just transition concept in the context of international investment law and transitioning away from fossil fuel-related investments.