In a recent decision, the European Commission pushed for the coordinated withdrawal of the EU, Euratom and all member states from the Energy Charter Treaty (ECT), an international investment agreement protecting fossil fuel investments, rejecting the EU Council’s proposal to move ahead with the splitting option.
A split withdrawal from the ECT means the EU, Euratom and some member states would leave the treaty while other member states would be allowed to remain party to a modernised version of the investment agreement.
Paul de Clerck, economic justice campaigner at Friends of the Earth Europe commented:
‘The Commission’s decision to go for a coordinated withdrawal is the only logical way forward after eight countries already decided to leave the Energy Charter Treaty and the European Parliament also voted for such an exit.
The ECT is a climate-wrecking treaty from the past, invented to protect fossil fuel interests. The EU and member states should no longer be part of that system’.
The European Commission rejected the member states’ request to prepare a proposal for a split withdrawal, arguing it is legally too complicated and it would harm the unity of the bloc. The Commission’s proposal is expected to be discussed at the Energy Council on 12 July 2023, and the Spanish presidency should bring it for a vote in the next months.
Amandine Van den Berghe, trade and environment lawyer at ClientEarth said:
“The European Commission has seen sense. The quickest and simplest way to free the EU from the regulatory chilling effect of the Energy Charter Treaty is for all member states to quit it together.
This is how the EU can preserve solidarity in the international arena and accelerate its climate ambitions without fear of reprisal from the fossil fuel industry.”
A coordinated exit from the ECT would allow the EU to remove the ‘sunset clause’ between themselves, which allows disputes related to existing investments to be brought up to 20 years after a party has left the treaty.
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Stop the Energy Charter Treaty
The Energy Charter Treaty (ECT) is a major obstacle to fast and effective action on the climate and environmental crisis. Our transformation to a green and fair society will become harder, slower and more expensive if we don’t stop it.
