Slow progress on proposal to modernise Energy Charter Treaty

The modernisation of the Energy Charter Treaty (ECT) has faced mounting criticism. Spain and France have been pushing for the EU to leave the treaty. The treaty, a multilateral investment agreement protecting foreign investments in energy supply, can be used to protect fossil fuel projects. It allows energy companies to challenge governments on measures that could impact the expected income from investments made. It currently has 54 signatories, including the EU and nearly all European countries, as well as Turkey, Central Asia and Japan.

The ECT is currently under review, but progress has been slow on the modernisation process and campaigners claim it will not solve core issues such as arbitration or the protection of fossil fuel investments, as any reform needs unanimous approval from the treaty’s 54 signatories.

The treaty´s Investor-State Dispute Settlement (ISDS) could lead to taxpayers paying up to €1.3 trillion in arbitrations by 2050, of which 42 percent would be paid by EU citizens. For example, in February the German energy giant RWE used the ECT to claim €1.4 billion in compensation from the Netherlands over its planned phase-out of coal from the country’s electricity mix by 2030.

However, leaving the treaty does not end the commitment, as a sunset clause means that countries must uphold their commitments for another 20 years. Italy, for example, left in 2016 and faced a number of post-withdrawal arbitrations.

Source:

Taylor. Kira (2021) EU pushes for fossil fuel phase-out in “last chance” energy charter treaty talks. Accessed 19 February 2021. https://www.euractiv.com/section/energy/news/eu-pushes-for-fossil-fuel-p...

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Slow progress on proposal to modernise Energy Charter Treaty

In this issue

Ocean acidification increases the agony of the Baltic Sea

Editorial

Improved air quality could save 200,000 lives per year

EU Clean Air Outlook

EU countries falling short of air pollution targets

Renewables have reduced environmental pressures in EU

Estonia: from shale to gale

Net zero air travel? Climate-positive hamburgers?

Towards sustainability of marine governance

Phasing out fossil gas power stations in Europe by 2030

In Breif

100% renewable electricity supply is possible by 2030

Meeting Paris goals and phasing out fossil fuels could save “millions of lives”

UN Secretary General urges all countries to declare climate emergency

Bulgaria and Greece to go to court for air quality breaches

Hungary breached EU air pollution limits

Domestic wood burning biggest PM emitter in the UK

Major emitters of air pollution often overlooked

Close links between air pollution and climate action

Ocean Acidification Action Week initated by the BALSAM-project, 3-9 May 2021

Decarbonising the shipping industry

Rules of the Paris Agreement

Slow progress on proposal to modernise Energy Charter Treaty

Climate crimes must be brought to justice

Solar radiative management opposed

CAN conclusions on CCS

Fossil fuel air pollution caused 8.7m deaths globally

Clean Air Day 2021

Phase out scrubbers on ships

Support for Mediterranean Emission Control Area

Publications

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Northern forests, climate change and the UNFCCC

EU climate targets aligned with the Paris agreement’s 1.5°C objective

Baltic Sea Offshore Wind Collaborative-Learning project

Air pollution in Europe and children’s health

Climate Change: A Himalayan Odessey

No further discussion needed. The agreed global goal is to limit temperature rise to 1.5°C

Fossil-free electricity 2021

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Air pollution

Climate Change

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