{"id":63260,"date":"2024-04-30T09:52:39","date_gmt":"2024-04-30T16:52:39","guid":{"rendered":"https:\/\/energi.media\/?p=63260"},"modified":"2024-04-30T09:52:39","modified_gmt":"2024-04-30T16:52:39","slug":"eu-exits-treaty-allowing-fossils-to-sue-over-climate-policy","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/eu-exits-treaty-allowing-fossils-to-sue-over-climate-policy\/","title":{"rendered":"EU exits treaty allowing fossils to sue over climate policy"},"content":{"rendered":"

This article was published by The Energy Mix<\/a> on April 29, 2024.<\/em><\/p>\n

By Christopher Bonasia<\/strong><\/em><\/p>\n

European Union lawmakers have voted to withdraw from an international agreement protecting energy investment and trade, paving the way for other signatory states to follow suit.<\/p>\n

Following the EU\u2019s example, a wave of countries that had signed on to the Energy Charter Treaty (ECT) are expected to leave \u201cthe sinking ship,\u201d\u00a0said<\/a>\u00a0Audrey Changoe, trade and investment coordinator at Climate Action Network Europe. \u201cEven a modernized version of the treaty would put climate action in the remaining countries in grave danger.\u201d<\/p>\n

On April 24, the EU Parliament voted 560-43 with 27 abstentions to withdraw from the treaty,\u00a0reports<\/a>\u00a0The Financial Times. The ECT had 53 signatories, so the EU\u2019s exit will roughly halve that number. Countries like Germany, France, and Poland have already formally left the treaty, and several others like the United Kingdom have announced plans to do so. Last week\u2019s vote follows nearly 10 months of negotiations around the withdrawal, which resulted in a compromise allowing EU countries wishing to modernize the treaty\u2014including Cyprus and Hungary\u2014to stay in.<\/p>\n

In force since 1998, the treaty had been originally drafted to protect European countries\u2019 investments in former Soviet Union countries after the Cold War. But it has been used by fossil fuel companies to sue countries that pass laws that hurt their profits, using a mechanism known as investor\u2013state dispute settlement (ISDS),\u00a0<\/a>writes<\/a>\u00a0the International Institute for Sustainable Development (IISD).<\/p>\n

Using ISDS, fossil fuel investors have been able to challenge government climate measures under the ECT more frequently than any other investment treaty,\u00a0<\/a>said<\/a>\u00a0IISD international law analyst Lukas Schaugg.<\/p>\n

\u201cWith its vote for the EU to leave the ECT, the European parliament underlines that granting fossil fuel companies privileged access to ISDS is fundamentally incompatible with climate mitigation,\u201d he said.<\/p>\n

Now backed by Parliament\u2019s approval, EU countries can make a final decision to leave the treaty and will likely start doing so in May,\u00a0<\/a>reports<\/a>\u00a0Reuters. But before that happens, they will let modernizing reforms to the treaty pass, to quell the fears of those who want to stay in.<\/p>\n

The ECT does\u00a0<\/a>include a sunset clause<\/a>\u00a0allowing fossil fuel companies to bring cases against countries for 20 years after countries withdraw. Countries are therefore seeking to secure international agreements to offset that risk.<\/p>\n

\u201cIt took years of campaigning by activists across the world to get us to this point, and it will take some more effort to guard against the negative effects of the ECT,\u201d\u00a0<\/a>said<\/a>\u00a0Irish Senator Lynn Boylan, climate spokesperson on climate justice for Sinn F\u00e9in.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

This article was published by The Energy Mix on April 29, 2024. By Christopher Bonasia European Union lawmakers have voted to withdraw from an international agreement protecting energy investment and trade, paving the way for [Read more]<\/a><\/p>\n<\/div>","protected":false},"author":6,"featured_media":63261,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[1],"tags":[109,2699,80,1077,14,895],"class_list":{"0":"post-63260","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-climate-change","9":"tag-energy-charter-treaty","10":"tag-environment","11":"tag-eu","12":"tag-featured","13":"tag-paris-agreement"},"acf":[],"yoast_head":"\nclimate - Thoughtful Journalism About Energy's Future<\/title>\n<meta name=\"description\" content=\"Following the EU\u2019s example, a wave of countries that had signed on to the Energy Charter Treaty (ECT) are expected to leave.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energi.media\/news\/eu-exits-treaty-allowing-fossils-to-sue-over-climate-policy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"climate - 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