Statement on the modernisation of the Energy Charter Treaty

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 phasedout, 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.

European Parliament
1. Maria ARENA, S&D, Belgium
2. Manon AUBRY, GUE/NGL, France
3. Saskia BRICMONT, Greens/EFA, Belgium
4. Anna CAVAZZINI, Greens/EFA, Germany
5. Pascal DURAND, Renew Europe, France
6. Aurore LALUCQ, S&D, France
7. Helmut SCHOLZ, GUE/NGL, Germany
8. Alviina ALAMETSÄ, Greens/EFA, Finland
9. François ALFONSI, Greens/EFA, France
10. Eric ANDRIEU, S&D, France
11. Marc ANGEL, S&D, Luxembourg
12. Margrete AUKEN, Greens/EFA, Denmark
13. Pernando BARRENA, GUE/NGL, Spain
14. Benoît BITEAU, Greens/EFA, France
15. Malin BJÖRK, GUE/NGL, Sweden
16. Vilija BLINKEVIČIŪTĖ, S&D, Lithuania
17. Michael BLOSS, Greens/EFA, Germany
18. Manuel BOMPARD, GUE/NGL, France
19. Marc BOTENGA, GUE/NGL, Belgium
20. Sylvie BRUNET, Renew Europe, France
21. Reinhard BÜTIKOFER, Greens/EFA, Germany
22. Pascal CANFIN, Renew Europe, France
23. Damien CAREME, Greens/EFA, France
24. Fabio Massimo CASTALDO, NI, Italy
25. Catherine CHABAUD, Renew Europe, France
26. Mohammed CHAHIM, S&D, Netherlands
27. Leila CHAIBI, GUE/NGL, France
28. Tudor CIUHODARU, S&D, Romania
29. Antoni COMÍN, NI, Spain
30. David CORMAND, Greens/EFA, France
31. Ignazio CORRAO, NI, Italy
32. Katalin CSEH, Renew Europe, Hungary
33. Ciarán CUFFE, Greens/EFA, Ireland
34. Jakop, DALUNDE, Greens/EFA, Sweden
35. Gwendoline DELBOS-CORFIELD, Greens/EFA, France
36. Karima DELLI, Greens/EFA, France
37. Bas EICKHOUT, Greens/EFA, Netherlands
38. Cornelia ERNST, GUE/NGL, Germany
39. Eleonora EVI, NI, Italy
40. Giuseppe FERRANDINO, S&D, Italy
41. Raphaël GLUCKSMANN, S&D, France
42. Sandro GOZI, Renew Europe, France
43. Claude GRUFFAT, Greens/EFA, France
44. Francisco GUERREIRO, Greens/EFA, Portugal
45. José GUSMÃO, GUE/NGL, Portugal
46. Henrike HAHN, Greens/EFA, Germany
47. Hannes HEIDE, S&D, Austria
48. Martin HOJSÍK, Renew Europe, Slovakia
49. Pär HOLMGREN, Greens/EFA, Sweden
50. Irena JOVEVA, Renew Europe, Slovenia
51. Yannick JADOT, Greens/EFA, France
52. Agnes JONGERIUS, S&D, Netherlands
53. Petros KOKKALIS, GUE/NGL, Greece
54. Dietmar KÖSTER, S&D, Germany
55. Philippe LAMBERTS, Greens/EFA, Belgium
56. Pierre LARROUTUROU, S&D, France
57. Javi LOPEZ, S&D, Spain
58. Erik MARQUARDT, Greens/EFA, Germany
59. Marisa MATIAS, GUE/NGL, Portugal
60. Emmanuel MAUREL, GUE/NGL, France
61. Nora MEBAREK, S&D, France
62. Tilly METZ, Greens/EFA, Luxemburg
63. Alessandra MORETTI, S&D, Italy
64. Hannah NEUMANN, Greens/EFA, Germany
65. Niklas NIENAß, Greens/EFA, Germany
66. Ville NIINISTÖ, Greens/EFA, Finland
67. Younous OMARJEE, GUE/NGL, France
68. Grace O’SULLIVAN, Greens/EFA, Ireland
69. Jutta PAULUS, Greens/EFA, Germany
70. Piernicola PEDICINI, NI, Italy
71. Anne-Sophie PELLETIER, GUE/NGL, France
72. Kira Marie PETER-HANSEN, Greens/EFA, Denmark
73. Manu PINEDA, GUE/NGL, Spain
74. Clara PONSATÍ, NI, Spain
75. Carles PUIGDEMONT, NI, Spain
76. Evelyn REGNER, S&D, Austria
77. Sira REGO, GUE/NGL, Spain
78. Michèle RIVASI, Greens/EFA, France
79. María Eugenia RODRÍGUEZ PALOP, GUE/NGL, Spain
80. Caroline ROOSE, Greens/EFA, France
81. Mounir SATOURI, Greens/EFA, France
82. Andreas SCHIEDER, S&D, Austria
83. Günther SIDL, S&D, Austria
84. Ivan Vilibor SINČIĆ, NI, Croatia
85. Jordi SOLÉ, Greens/EFA, Spain
86. Paul TANG, S&D, Netherlands
87. Marie TOUSSAINT, Greens/EFA, France
88. Miguel URBAN CRESPO, GUE/NGL, Spain
89. Ernest URTASUN, Greens/EFA, Spain
90. Kathleen VAN BREMPT, S&D, Belgium
91. Kim VAN SPARRENTAK, Greens/EFA, Netherlands
92. Monika VANA, Greens/EFA, Austria
94. Mick WALLACE, GUE/NGL, Ireland
95. Maria WALSH, EPP, Ireland
96. Salima YENBOU, Greens/EFA, France
97. Chrysoula ZACHAROPOULOS, Renew Europe, France
National Parliaments
98. Miquel AUBA, ERC, Spain
99. Clémentine AUTAIN, LFI, France
100. Delphine BAGARRY, EDS, France
101. Erwan BALANANT, Modem, France
102. Hugues BAYET, Parti Socialiste, Belgium
103. Marie-Noëlle BATTISTEL, SOC, France
104. Sandra BECKERMAN, Socialistische Partij, Netherlands
105. Joan CAPDEVILA, ERC, Spain (on behalf of the entire Grupo Parlamentario Republicano
106. Laura CASTEL, ERC, Spain
107. Xavier CASTELLANA, ERC, Spain
108. Annie CHAPELIER, EDS, France
109. Jean-Charles COLAS-ROY, LREM, France
110. Samuel COGOLATI, Ecolo, Belgium
111. Éric COQUEREL, LFI, France
112. Yolaine de COURSON, EDS, France
113. Maria DANTAS, ERC, Spain
114. Jennifer de TEMMERMAN, EDS, France
115. Frédérique DUMAS, L&T, France
116. Jean-Luc FUGIT, LREM, France
117. Yannick HAURY, LREM, France
118. Anissa KHEDHER, LREM, France
119. François-Michel LAMBERT, L&T, France
120. Célia de LAVERGNE, LREM, France
121. Sandrine LE FEUR, LREM, France
123. Robert MASIH, ERC, Spain
124. Marjolaine MEYNIER-MILLEFERT, LREM, France
125. Joan Josep NUET, EUiA, Spain
126. Matthieu ORPHELIN, EDS, France
127. Mathilde PANOT, LFI, France
128. Benedicte PETELLE, LREM, France
129. Valérie PETIT, Agir Ensemble, France
130. Damien PICHEREAU, LREM, France
131. Gerardo PISARELLO, En Comù Podem, Spain
132. Dominique POTIER, SOC, France
133. Pierre-Alain RAPHAN, LREM, France
134. Michel REIMON, Greens, Austria
135. Cécile RILHAC, LREM, France
136. Véronique RIOTTON, LREM, France
137. Marta ROCIQUE, ERC, Spain
138. Enrique SANTIAGO, Unidas Podemos, Spain
139. Huguette TIEGNA, LREM, France
140. Elisabeth TOUTUT-PICARD, LREM, France
141. Frédérique TUFFNELL, EDS, France
142. Laurence VANCEUNEBROCK, LREM, France
143. Michèle de VAUCOULEURS, Modem, France
144. Cédric VILLANI, EDS, France
145. Martine WONNER, EDS, France
146. Jean-Marc ZULESI, LREM, France