Today (Tuesday 9 April) the Parliament’s trade and energy committees voted to support the EU withdrawal from the Energy Charter Treaty (ECT), with 58 Members of the European Parliament (MEPs) in favour, eight against, and two abstaining.
The ECT is an international treaty signed by 50 countries. It was created in 1994, as a way to foster cooperation between states on energy matters and generate and protect investment in energy ventures in post-Soviet countries.
Following the vote, the trade committee’s rapporteur on the file, Anna Cavazzini (Greens/EFA), hailed the vote as “a major step in the right direction” and welcomed the EU’s anticipated exit from the “climate-hostile” ECT.
To climate activists, as well as some MEPs and member states, the ECT is viewed as an outdated treaty that harms countries’ climate goals because it enables fossil fuel companies to protect their investments.
This legal protection led to companies suing member states for shutting down fossil fuel plants and administering renewable energy subsidies.
The Parliament’s vote follows the European Commission’s proposal for a coordinated EU exit from the treaty, presented last month, after several EU countries had left, or signalled their intention to leave the ECT.
“The Energy Charter Treaty allows fossil fuel multinationals to sue states and the EU if climate policies affect their profits,” said lead energy committee MEP Marc Botenga (The Left), following the committee vote.
“In the midst of a climate crisis, this is a contradiction, in addition to being very costly for taxpayers,” Botenga added.
However, member states like Slovakia and Hungary believe the ECT can be modernised and aligned with the EU’s Green Deal goals.
Under the Commission’s plan, countries who wish, can remain within the ECT and push for its modernisation.
If the treaty is satisfactorily modernised, countries who wish to remain in the agreement can work with the Commission, on a plan to remain as signatories to the updated version of the treaty.
The entire European Parliament will have its say when the EU’s withdrawal from the treaty will be voted on in the next plenary session later this month.
Take the Survey at https://survey.energynewsbeat.com/
ENB Top News
ENB
Energy Dashboard
ENB Podcast
ENB Substack
