A bad day for climate killers: European Parliament approves exit from Energy Charter Treaty
Berlin, 24.04.2024: The European Parliament voted overwhelmingly in favour of the EU's withdrawal from the Energy Charter Treaty (ECT) today at its last session of this legislative term. 560 MEPs voted to leave the EU, 43 voted against and 27 abstained.
Fabian Flues, trade expert at PowerShift, comments on the decision: “This is an important achievement for climate action. The EU is finally leaving the Climate-Killer Energy Charter Treaty. The overwhelming majority in Parliament shows that non-transparent arbitral tribunals have no place in our democratic community. Now the EU must do everything it can to rule out new lawsuits in the future.”
The withdrawal has yet to be finally confirmed by the European Council, which is expected to vote on it in May. Consent is considered secure.
Million-dollar lawsuits against state climate and environmental protection measures by investors before controversial arbitral tribunals have repeatedly brought the contract into criticism. Most recently, in the autumn, the raw materials group Klesch Group filed a lawsuit against Germany, Denmark and the EU against the taxation of excess profits in the energy sector. The Swiss energy company AET launched a case against the German coal phase-out in October.
Germany’s withdrawal from the ECT became valid in December 2023. In addition to Germany, 11 other states have withdrawn from the Energy Charter Treaty or have announced their withdrawal. The United Kingdom recently announced its intention to leave the treaty. It is expected that other states, together with the EU, will leave the treaty. A legal opinion has shown that for EU member states, the risk of being sued under the ECT increases after an EU exit.
Existing investments are further protected under the Energy Charter Treaty 20 years after the withdrawal. The EU is currently negotiating an agreement to limit this possibility.
For more information:
- PowerShift study “Following the EU’s withdrawal from the Energy Charter Treaty”: https://power-shift.de/eu-austritt-energiecharta-vertrag/
If you have any questions, please do not hesitate to contact:
- Fabian Flues, Trade and Investment Policy Officer at PowerShift, fabian.flues@power-shift.de, 0159 06113733
- Adrian Bornmann, Press and Public Relations Officer at PowerShift, adrian.bornmann@power-shift.de, 017672773137
