BRUSSELS – In a decisive move reflecting growing environmental concerns, the European Parliament has voted overwhelmingly to recommend the EU’s withdrawal from the Energy Charter Treaty (ECT). The recommendation was adopted with a resounding 560 votes in favor, 43 against, and 27 abstentions. This paves the way for the Council to adopt the decision by qualified majority, requiring Parliament’s consent.
The exit will become official after the 27 EU states endorse the move.
The ECT, established in 1994 to regulate trade and investment in the energy sector, has increasingly come under fire for its perceived climate-hostile stance. This sentiment was echoed by the European Parliament in a resolution passed in 2022, further emphasizing the urgency to exit the treaty.
Anna Cavazzini, the Rapporteur for the Trade Committee from the Greens/EFA party, expressed her satisfaction with the vote. “Today’s vote is a major step in the right direction,” she said. “The EU is finally withdrawing from the climate-hostile Energy Charter Treaty. In view of the climate crisis, the EU must become a climate-neutral continent as quickly as possible. Finally, the fossil dinosaur treaty is no longer standing in the way of consistent climate protection.”
Marc Botenga (The Left, BE), the Rapporteur for the Industry, Research and Energy Committee, highlighted the potential financial burden and contradictions posed by the treaty. “The Energy Charter Treaty allows fossil fuel multinationals to sue states and the European Union if climate policies affect their profits. In the midst of a climate crisis, this is a contradiction, in addition to being very costly for taxpayers. Alongside civil society, a significant movement has been built to exit from this treaty and I am happy to see this is bearing fruit today.”
The ECT has faced criticism for its outdated nature and for being one of the most litigated investment treaties globally, remaining largely unchanged since its inception. The European Commission has proposed a coordinated withdrawal by the EU and its member states, viewing the Treaty as incompatible with the EU’s ambitious climate goals outlined in the European Green Deal and the Paris Agreement.
The Commission’s concerns primarily stem from the ECT’s potential to hinder the EU’s transition away from fossil fuels by facilitating continued investments in this sector. As the EU strives to become a climate-neutral continent, there is an increasing need to align all policies and agreements with this overarching objective.
The decision to recommend exiting the Energy Charter Treaty marks a significant milestone in the EU’s journey towards more sustainable and environmentally friendly energy policies. As the world grapples with the pressing challenges of climate change, the EU’s proactive stance in reevaluating its international commitments sends a strong message about its commitment to leading by example in the fight against climate change.
Source: European Parliament – Press Release
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