EU Plots Exit from “Outdated” Energy Treaty

The European Union, Member States and the European Atomic Energy Community are to withdraw from the Energy Charter Treaty in a “coordinated and orderly manner”. According to the European Commission, the withdrawal from the treaty – established in the 1990s – will “ensure the equal treatment of investors across the EU and beyond”. A number of EU Member States had previously announced their intention to quit, because treaty provisions intended to protect investors were constraining their ability to transition to renewable energy. The Commission said the treaty is no longer compatible with the EU’s enhanced climate ambition, adding that it was also withdrawing its proposal to ratify a modernised version of the treaty, negotiated between 2019 and 2022, which had failed to win majority support. “With the European Green Deal, we are reshaping our energy and investment policies for a sustainable future. The outdated Energy Charter Treaty is not aligned with our EU Climate Law and our commitments under the Paris Agreement,” said Frans Timmermans, Executive Vice-President for the European Green Deal.

 

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