EU readies reforms to Energy Charter Treaty as climate criticisms mount

(EurActiv, 16 Feb 2021) The European Commission is expected to propose reforms to an international energy treaty as early as Monday (22 February), EU officials said, after some governments have said the bloc should consider quitting the agreement because it could threaten climate goals.

Signed in 1994 to protect cross-border investment in the energy sector, the Energy Charter Treaty has faced growing criticism from environmental groups and governments that say it impedes countries’ efforts to phase out fossil fuels.

The agreement enables foreign investors to seek financial compensation from governments, if changes to energy policy negatively affect their investments.

Among the most recent uses of the treaty, RWE last month sought compensation from the Dutch government over its plan to phase out coal-fuelled power by 2030, which would affect the German utility’s Eemshaven power plant.

The treaty’s more than 50 signatories meet next month to negotiate an updated text. The European Commission is expected to produce its negotiating position late on Monday, for EU countries to consider, EU officials said.

Some countries are growing impatient, after three rounds of negotiations last year failed to yield progress.

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EurActiv, 16 Feb 2021: EU readies reforms to Energy Charter Treaty as climate criticisms mount