The European Commission recently sent new proposals to Member States to modernise the Energy Charter Treaty (ECT), according to an internal Commission document dated 26 October, revealed by Politico.
This document complements the institution’s proposals to modernise the Treaty which were sent on 19 May to the ECT Secretariat after approval by the Member States.
In particular, the text provides for the Treaty’s investment protection provisions not to be applied to future investments in fossil fuels.
However, investments related to the production of electricity from gas, oil and other gaseous hydrocarbons through power plants and infrastructure allowing the use of renewable, low-carbon gases and emitting less than 550g of fossil CO2 per kW/h of electricity would still be covered by the Treaty until 31 December 2030.
Furthermore, if these investments replace investments in fossil fuels, the period would be extended to 31 December 2040.
The Commission suggests that the same should apply to future investments in pipelines capable of transporting renewable and low-carbon gases and hydrogen.
Existing investments in fossil fuels would continue to be covered by the ‘investment protection’ chapter ten years after the entry into force or provisional application of the Treaty amendment.
Considering that the ECT contradicts the Union’s climate objectives, environmental NGOs have criticised these proposals.
“The Commission proposes to continue protecting fossil fuels for at least another ten years - and twenty years for gas infrastructure. This blind submission to fossil fuel interests undermines the Paris Agreement and the European Green Deal”, said Paul de Clerck, on behalf of the NGO Friends of the Earth Europe.
While its modernisation process started this year (the third round of negotiations will take place from 3 to 6 November), the ECT has recently been the subject of a debate in the European Parliament (see EUROPE 12587/3).
A little earlier, it had adopted, by the narrowest of margins, an amendment to the ‘Climate Act’ calling for the modernisation of the treaty to end investment protection for fossil fuels (see EUROPE 12576/1).
New Commission proposals will have to be validated by the Member States before being sent to the ECT Secretariat.
See the new Commission proposals: https://politi.co/35Ft5Zn (Original version in French by Damien Genicot)