The EU aims to become the indisputable climate leader and the world’s first climate-neutral region. The European Green Deal and the proposed EU Climate Law are some of the most ambitious known policy instruments to combat climate change.
However, the little-known Energy Charter Treaty (ECT) is threatening the climate ambition of the EU domestically and internationally. The EU and its Member States ratified the Treaty with the aim to strengthen the EU’s energy security by ensuring a continuous supply of fossil fuels from the East to the West.
Not only did the “raison d’être” of the ECT became obsolete since Russia’s withdrawal from the Treaty in 2009.Today, the ECT is a serious threat to Europe’s climate neutrality target and more broadly to the implementation of the Paris Agreement. By protecting foreign investments in fossil fuels by means of the highly controversial Investor-State-Dispute-Settlement (ISDS) mechanism, the ECT protects foreign investments in greenhouse gas emissions and multiplies the cost of the ecological transition. EU citizens are democratically calling for ambitious climate action, but are unknowingly funding the life insurance that the ECT provides to fossil fuels investors.
By 2050, cumulative greenhouse gas emissions protected by the ECT, if fossil fuels are not phased-out, would be equivalent to one-third of the remaining global Carbon budget for the period 2018-2050.
Furthermore, the cost of the continuation of the ECT is higher than the historic EU recovery fund agreed in July. On one hand, stranded fossil fuels assets protected by the ECT would potentially reach at least €2.15 trillion by 2050 if fossil fuels are not phased-out from the ECT binding investment protection. On the other hand, the potential cost of ISDS claims could reach at least €1.3 trillion by 2050 out of which 42% will be paid by EU taxpayers.
The Energy Charter Treaty is neither consistent with the European Green Deal, nor with the proposed EU climate law and national carbon neutrality targets, nor with the EIB energy lending policy and the EU taxonomy for sustainable investment. Phasing-out fossil fuels from the ECT investment protection mechanism is for us a prerequisite for the negotiations on the modernisation of the ECT.
We, Members of the European and National Parliaments, require EU negotiators to ensure that the provisions in the ECT that protect foreign investment in fossil fuels are deleted and thus removed from the ECT. Similarly, ISDS provisions need to be scrapped or fundamentally reformed and limited. If this is not achieved at the end of the 3rd negotiation round planned for the autumn, we ask EU Member States to explore pathways to jointly withdraw from the ECT by the end of 2020.
Our priority is to ensure the EU and its Member States are fully aligned with the Paris Agreement and EU priorities. The ECT risks our climate future and every step must be taken to ensure the EU strengthens its climate action, not undermines it.
Read the statement here
Signatories
European Parliament
- Maria ARENA, S&D, Belgium
- Manon AUBRY, GUE/NGL, France
- Saskia BRICMONT, Greens/EFA, Belgium
- Anna CAVAZZINI, Greens/EFA, Germany
- Pascal DURAND, Renew Europe, France
- Aurore LALUCQ, S&D, France
- Helmut SCHOLZ, GUE/NGL, Germany
- Alviina ALAMETSÄ, Greens/EFA, Finland
- François ALFONSI, Greens/EFA, France
- Eric ANDRIEU, S&D, France
- Marc ANGEL, S&D, Luxembourg
- Margrete AUKEN, Greens/EFA, Denmark
- Pernando BARRENA, GUE/NGL, Spain
- Benoît BITEAU, Greens/EFA, France
- Malin BJÖRK, GUE/NGL, Sweden
- Vilija BLINKEVIČIŪTĖ, S&D, Lithuania
- Michael BLOSS, Greens/EFA, Germany
- Manuel BOMPARD, GUE/NGL, France
- Marc BOTENGA, GUE/NGL, Belgium
- Reinhard BÜTIKOFER, Greens/EFA, Germany
- Pascal CANFIN, Renew Europe, France
- Damien CAREME, Greens/EFA, France
- Fabio Massimo CASTALDO, NI, Italy
- Catherine CHABAUD, Renew Europe, France
- Mohammed CHAHIM, S&D, Netherlands
- Leila CHAIBI, GUE/NGL, France
- Tudor CIUHODARU, S&D, Romania
- Antoni COMÍN, NI, Spain
- David CORMAND, Greens/EFA, France
- Ignazio CORRAO, NI, Italy
- Ciarán CUFFE, Greens/EFA, Ireland
- Jakop, DALUNDE, Greens/EFA, Sweden
- Gwendoline DELBOS-CORFIELD, Greens/EFA, France
- Karima DELLI, Greens/EFA, France
- Bas EICKHOUT, Greens/EFA, Netherlands
- Cornelia ERNST, GUE/NGL, Germany
- Eleonora EVI, NI, Italy
- Giuseppe FERRANDINO, S&D, Italy
- Raphaël GLUCKSMANN, S&D, France
- Claude GRUFFAT, Greens/EFA, France
- Francisco GUERREIRO, Greens/EFA, Portugal
- José GUSMÃO, GUE/NGL, Portugal
- Henrike HAHN, Greens/EFA, Germany
- Hannes HEIDE, S&D, Austria
- Martin HOJSÍK, Renew Europe, Slovakia
- Pär HOLMGREN, Greens/EFA, Sweden
- Irena JOVEVA, Renew Europe, Slovenia
- Yannick JADOT, Greens/EFA, France
- Agnes JONGERIUS, S&D, Netherlands
- Petros KOKKALIS, GUE/NGL, Greece
- Dietmar KÖSTER, S&D, Germany
- Philippe LAMBERTS, Greens/EFA, Belgium
- Pierre LARROUTUROU, S&D, France
- Javi LOPEZ, S&D, Spain
- Erik MARQUARDT, Greens/EFA, Germany
- Marisa MATIAS, GUE/NGL, Portugal
- Emmanuel MAUREL, GUE/NGL, France
- Nora MEBAREK, S&D, France
- Tilly METZ, Greens/EFA, Luxemburg
- Alessandra MORETTI, S&D, Italy
- Hannah NEUMANN, Greens/EFA, Germany
- Niklas NIENAß, Greens/EFA, Germany
- Ville NIINISTÖ, Greens/EFA, Finland
- Younous OMARJEE, GUE/NGL, France
- Grace O’SULLIVAN, Greens/EFA, Ireland
- Jutta PAULUS, Greens/EFA, Germany
- Piernicola PEDICINI, NI, Italy
- Anne-Sophie PELLETIER, GUE/NGL, France
- Kira Marie PETER-HANSEN, Greens/EFA, Denmark
- Manu PINEDA, GUE/NGL, Spain
- Clara PONSATÍ, NI, Spain
- Carles PUIGDEMONT, NI, Spain
- Evelyn REGNER, S&D, Austria
- Sira REGO, GUE/NGL, Spain
- Michèle RIVASI, Greens/EFA, France
- María Eugenia RODRÍGUEZ PALOP, GUE/NGL, Spain
- Caroline ROOSE, Greens/EFA, France
- Mounir SATOURI, Greens/EFA, France
- Andreas SCHIEDER, S&D, Austria
- Günther SIDL, S&D, Austria
- Ivan Vilibor SINČIĆ, NI, Croatia
- Jordi SOLÉ, Greens/EFA, Spain
- Paul TANG, S&D, Netherlands
- Marie TOUSSAINT, Greens/EFA, France
- Miguel URBAN CRESPO, GUE/NGL, Spain
- Ernest URTASUN, Greens/EFA, Spain
- Kathleen VAN BREMPT, S&D, Belgium
- Kim VAN SPARRENTAK, Greens/EFA, Netherlands
- Monika VANA, Greens/EFA, Austria
- Idoia VILLANUEVA RUIZ, GUE/NGL, Spain
- Mick WALLACE, GUE/NGL, Ireland
- Salima YENBOU, Greens/EFA, France
- Chrysoula ZACHAROPOULOS, Renew Europe, France
National Parliaments
- Miquel AUBA, ERC, Spain
- Delphine BAGARRY, EDS, France
- Erwan BALANANT, Modem, France
- Hugues BAYET, Parti Socialiste, Belgium
- Sandra BECKERMAN, Socialistische Partij, Netherlands
- Joan CAPDEVILA, ERC, Spain (on behalf of the entire Grupo Parlamentario Republicano Congreso)
- Laura CASTEL, ERC, Spain
- Xavier CASTELLANA, ERC, Spain
- Annie CHAPELIER, EDS, France
- Jean-Charles COLAS-ROY, LREM, France
- Samuel COGOLATI, Ecolo, Belgium
- Éric COQUEREL, LFI, France
- Yolaine de COURSON, EDS, France
- Maria DANTAS, ERC, Spain
- Jennifer de TEMMERMAN, EDS, France
- Frédérique DUMAS, L&T, France
- Jean-Luc FUGIT, LREM, France
- Yannick HAURY, LREM, France
- Anissa KHEDHER, LREM, France
- François-Michel LAMBERT, L&T, France
- Célia de LAVERGNE, LREM, France
- Sandrine LE FEUR, LREM, France
- Laurence MAILLAIRT-MEHAIGNERIE, LREM, France
- Robert MASIH, ERC, Spain
- Marjolaine MEYNIER-MILLEFERT, LREM, France
- Joan Josep NUET, EUiA, Spain
- Matthieu ORPHELIN, EDS, France
- Mathilde PANOT, LFI, France
- Benedicte PETELLE, LREM, France
- Valérie PETIT, Agir Ensemble, France
- Damien PICHEREAU, LREM, France
- Gerardo PISARELLO, En Comù Podem, Spain
- Dominique POTIER, SOC, France
- Michel REIMON, Greens, Austria
- Cécile RILHAC, LREM, France
- Véronique RIOTTON, LREM, France
- Marta ROCIQUE, ERC, Spain
- Enrique SANTIAGO, Unidas Podemos, Spain
- Huguette TIEGNA, LREM, France
- Elisabeth TOUTUT-PICARD, LREM, France
- Frédérique TUFFNELL, EDS, France
- Laurence VANCEUNEBROCK, LREM, France
- Michèle de VAUCOULEURS, Modem, France
- Cédric VILLANI, EDS, France
- Martine WONNER, EDS, France
- Jean-Marc ZULESI, LREM, France