The national delegations of the Member States once again exchanged views with the European Commission in order to define the European Union’s position for the next international negotiation session on the modernisation of the Energy Charter Treaty (ECT) on Tuesday, 26 January, during a meeting of the EU Council’s ‘Energy’ working group.
According to our information, the European Commission reportedly informed delegations that it is currently drawing up a new proposal aiming to revise the definition of ‘economic activity in the energy sector’ in the treaty.
This position contrasts with the one displayed by the institution during the previous meeting of the ‘Energy’ working group on Tuesday, 19 January.
Several sources had revealed to us that the European Commission had, in fact, indicated during that meeting that it did not intend to revise its proposal dated 26 October 2020 (see EUROPE 12591/17)—and this despite criticism from certain Member States, specifically France, Spain, Luxembourg, Austria, Belgium, and Latvia (see EUROPE 12640/17).
During Tuesday’s meeting, the European Commission reportedly justified its about-turn by the need to bring its proposal in line with the ambition set out in the new Council conclusions on the European Union’s climate and energy diplomacy.
Adopted on 25 January (see EUROPE 12643/9), they notably state: “EU energy diplomacy will support the reform and modernisation processes of international energy organisations, bodies and initiatives with a view to driving an inclusive global energy transition in alignment with Paris Agreement objectives, highlighting in particular the urgent need for progress in the negotiations for the modernisation of the Energy Charter Treaty”.
While it is still too early to say what the European Commission’s new proposal will contain, it is possible that the institution will revise the emission ceiling, which is expressed in grams of fossil CO2 per kWh of electricity and below which fossil fuel-based electricity generation could continue to be covered by the ECT.
More specifically, the European Commission’s document dated 26 October suggests that investments related to the production of electricity from petroleum gas and other gaseous hydrocarbons through power plants and infrastructures allowing the use of renewable or low-carbon gases and emitting less than 550 g of fossil CO2 per kWh of electricity would still be covered by the treaty until 31 December 2030.
According to the institution, the deadline is, moreover, expected to be extended to 31 December 2040 in two cases: if these investments replace investments in coal and petrol-fired power generation and for future investments in gas pipelines capable of transporting renewable and low-carbon gases as well as hydrogen.
But some countries want a lower ceiling and earlier deadlines.
According to a document dated 18 January that we previously reported on in detail (see EUROPE 12640/17), Spain and Luxembourg are thus asking for the ceiling to be set at 100 g of fossil CO2 per kWh of electricity, France and the Netherlands at 250 g, and Austria at 380 g.
Moreover, Belgium informed the European Commission that it would tend to favour 380 g but that it would like clarifications on the impact of such a ceiling.
On the other hand, with regard to deadlines, the Belgian delegation told the institution that it “can support” the dates in the October document.
A race against the clock
According to one source, the European Commission’s about-turn was reportedly not looked on with a favourable eye by all Member States, with some considering the presentation of a new proposal to be unrealistic given the time available.
In fact, the fourth round of international negotiations on the modernisation of the treaty—during which the European Commission represents the EU—will take place from 2 March to 5 March.
Although there is still a lot of uncertainty, clarifications could emerge on 4 February and 9 February, the dates on which the ‘Energy’ working group will continue discussions on the ECT. (Original version in French by Damien Genicot)