| Several EU member states, including Germany, Poland and France, announced their withdrawal from the ECT international treaty, before the European Commission proposed a collective exit last July. AFP photo |
The European Commission proposed in July 2023 that the EU and its member states “withdraw in an orderly and uniform manner” from an energy pact deemed “incompatible with our climate ambitions.” back of Europe”.
After being confirmed in early March 2024, the European Parliament’s plenary session in Strasbourg gave the green light with 560 votes (43 votes against, 23 abstentions). Now we just have to wait for the final official approval of the countries.
A treaty signed after the Cold War
However, these countries would still be free to ratify the “modernization” of the Treaty currently under discussion and remain members – something Hungary, Slovakia, Malta and Cyprus specifically requested. The Energy Charter Treaty (ECT) was signed in 1994, at the end of the Cold War, to provide guarantees to investors in Eastern European countries and the former Soviet Union.
Bringing together the EU and around 50 countries, the ECT allows companies to submit claims to arbitration courts when government decisions and the regulatory environment affect their investment returns.
And this applies to pro-climate policies: In 2022, Italy must pay about 200 million euros in compensation to the oil company Rockhopper for refusing to issue offshore drilling licenses. German energy company RWE demanded – before giving up – 1.4 billion euros from The Hague to compensate for damages to a thermal power plant affected by Dutch anti-coal regulations.
Prevent prosecution
Faced with increasing disputes, Europeans first tried to modernize the text to prevent opportunistic claims and gradually phase out oil and gas. But due to the lack of compromise, about 10 EU countries (France, Spain, Netherlands, Germany, Luxembourg, Poland…) decided to withdraw from the treaty at the end of 2022. Italy left in 2015 Outside the EU, Britain announced its withdrawal on February 22.
The text adopted on Wednesday “is a collective signal, a real political weight that strengthens our climate roadmap,” Renew MEP rapporteur Christophe Grudler told AFP.
To be sure, all countries remain concerned about the “survival clause” of the ECT, which still protects oil and gas installations covered by the Treaty for 20 years, after a signatory country withdraws. But Mr Grudler believes this coordinated withdrawal could help prevent prosecutions within the EU.
Nh.Thach
AFP
Tags: countries simultaneously withdrew Fossil Fuel Protection Treaty
