EU Countries Unite to Exit Energy Treaty Over Climate Concerns
EU countries have collectively agreed to withdraw from an international energy treaty, citing concerns that it undermines efforts to combat climate change.
The Energy Charter Treaty of 1998, allowing energy companies to sue governments for policies harming their investments, has been utilised to challenge measures requiring the closure of fossil fuel plants.
EU ministers have endorsed the decision during a meeting in Brussels, supported by Reuters sources. The withdrawal now awaits approval from the European Parliament, with a high likelihood given the EU assembly's prior call to leave the treaty.
This move follows Brussels' proposal for a coordinated exit after several member states announced plans to withdraw, mainly citing climate change concerns. While some EU countries postponed a decision, citing differing interests, a recent EU proposal suggests allowing for reforms before departing, potentially facilitating agreement. EU countries are expected to approve treaty reforms in May, as indicated by a source from the Belgian EU presidency.
These reforms aim to reduce the period during which energy firms from non-EU states can benefit from investment protection.
About 50 treaty signatories agreed to these reforms last year, highlighting the need for EU approval to enforce them effectively. The key reform includes reducing the investment protection period from 20 to 10 years for energy firms from non-EU signatory states like Japan and Turkey, emphasising a shift towards sustainable energy policies.
Translation by Iurie Tataru
