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EU member states divided over green reforms of energy investment treaty
(Climate Home News, 17 Feb 2021) The European Union has renewed its push for greening a major international treaty protecting energy investments, after last-minute wrangling and divisions between member states.
While states like France, Spain and Luxembourg want drastic reform of the Energy Charter Treaty (ECT), sources familiar with the negotiations said several Eastern European nations are resisting change.
The treaty allows fossil fuel companies to sue nations when climate policies affect their profits. Recently, German utility RWE filed a suit against the Dutch government for €1.4 billion in damages over coal phaseout plans that hit the value of a plant the company built in 2015.
Similar cases could cost taxpayers across the world up to €1.3 trillion ($1.5tn) by 2050, according to the Open Exp think tank, based on the value of fossil fuel assets protected by the treaty. Just under half of these costs would fall on the EU.
Campaigners and some member states have called on the EU to leave the treaty – a matter complicated by a clause meaning the ECT’s rules apply for 20 years after leaving.
Climate Home News, 17 Feb 2021: EU member states divided over green reforms of energy investment treaty
