Another blow for Energy Charter Treaty as Luxembourg announces exit

(EurActiv, 18 Nov 2022) Luxembourg has decided to withdraw from the Energy Charter Treaty following in the footsteps of Germany, France, the Netherlands and others who have recently announced their exit from the controversial 1990s charter.

In force since 1998, the treaty, which has 53 signatories including the European Union, allows investors to sue governments over policies that jeopardise their investments and expected profits.

But a growing number of EU countries have decried the ECT for violating the goals of the Paris Agreement by offering legal protection to climate-wrecking fossil fuels.

Germany, preceded by France, the Netherlands, Poland and Spain, have recently announced their intention to withdraw from the treaty, citing the charter’s incompatibility with EU climate goals.

Luxembourg has now come to the same conclusion.

“Today, Luxembourg is exiting the Energy Charter Treaty. This is what the government council has decided today, based on my proposition,” the country’s Energy Minister Claude Turmes said in comments posted on Twitter.

“Even if the modernisation of the Energy Charter Treaty leads to some progress, the treaty is still not compatible with the goals of the Paris Climate Agreement, as it continues to protect investments in fossil and nuclear energies,” Turmes explained.

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EurActiv, 18 Nov 2022: Another blow for Energy Charter Treaty as Luxembourg announces exit