BETA


2023/0273(NLE) Energy Charter Treaty: withdrawal of the Union

Progress: Awaiting final decision

RoleCommitteeRapporteurShadows
Joint Responsible Committee ['INTA', 'ITRE'] CAVAZZINI Anna (icon: Verts/ALE Verts/ALE), BOTENGA Marc (icon: GUE/NGL GUE/NGL) CARVALHO Maria da Graça (icon: EPP EPP), HÜBNER Danuta Maria (icon: EPP EPP), GEIER Jens (icon: S&D S&D), RODRÍGUEZ-PIÑERO Inma (icon: S&D S&D), GRUDLER Christophe (icon: Renew Renew), VEDRENNE Marie-Pierre (icon: Renew Renew), NIINISTÖ Ville (icon: Verts/ALE Verts/ALE), BOURGEOIS Geert (icon: ECR ECR), KRASNODĘBSKI Zdzisław (icon: ECR ECR), MAUREL Emmanuel (icon: GUE/NGL GUE/NGL)
Lead committee dossier:
Legal Basis:
RoP 58, TFEU 194-p2, TFEU 207-p4, TFEU 218-p6

Events

2024/04/24
   EP - Text adopted by Parliament, 1st reading/single reading
Documents
2024/04/24
   EP - Decision by Parliament
Documents
2024/04/23
   EP - Debate in Parliament
2024/04/11
   EP - Committee report tabled for plenary, 1st reading/single reading
Documents
2024/04/11
   EP - Committee report tabled for plenary, 1st reading/single reading
Documents
2024/04/10
   EP - Committee referral announced in Parliament
2024/04/09
   EP - Vote in committee
2024/04/02
   EP - Committee draft report
Documents
2024/03/21
   EP - CAVAZZINI Anna (Verts/ALE) appointed as rapporteur in ['INTA', 'ITRE']
2024/03/21
   EP - BOTENGA Marc (GUE/NGL) appointed as rapporteur in ['INTA', 'ITRE']
2024/03/07
   CSL - Legislative proposal
Documents
2024/03/07
   EC - Legislative proposal published
Documents
2023/07/07
   EP - Preparatory document
Details

PURPOSE: to withdraw the Union from the Energy Charter Treaty.

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act.

BACKGROUND: the Energy Charter Treaty was concluded by the Union by Council and Commission Decision 98/181/EC, ECSC, Euratom and entered into force on 16 April 1998. The European Union is a Contracting Party to the ECT, together with Euratom, 26 EU Member States (as of 8 May 2023), as well as Japan, Switzerland, Turkey and most countries from the Western Balkans and the former USSR, with the exception of Russia and Belarus.

In the absence of any substantial update of the Agreement since the 1990s, the Agreement became increasingly outdated. In 2019, the Contracting Parties to the Agreement engaged in negotiations aimed at modernising the Agreement in order to bring it into alignment with the principles of the Paris Agreement, the requirements of sustainable development and the fight against climate change, as well as with modern standards of investment protection.

The Contracting Parties concluded the negotiations on 24 June 2022. The negotiated outcome was meant to the adopted at the 33rd meeting of the Energy Charter Conference on 22 November 2022. Ahead of the meeting of the Conference, the Union was unable to find a common position on the modernisation of the Agreement.

In the absence of a Union position, the adoption of the modernised Agreement by the Energy Charter Conference is impossible. The current, unmodernised Agreement continues to apply to the Union, in spite of the fact that it is not in line with the Union’s investment policy and law, including in particular the principle of autonomy of Union law, and with the Union’s energy and climate goals.

With no alternative available, it is therefore necessary for the Union to withdraw from the Agreement.

CONTENT: the Commission’s proposal concerns a Council decision on the withdrawal from the Union of the Energy Charter Treaty in accordance with Article 47.1 of that Treaty.

According to the Commission, remaining a Contracting Party to the current, unmodernised ECT is not an option for the EU or its Member States, as the current, unmodernised Treaty is not in line with the EU’s investment policy and law and with the EU’s energy and climate goals.

The provisions of the Treaty as regards investment protection, including the investor-to-State dispute settlement (ISDS) mechanism, are not in line with the EU approach to investment protection. In particular, the unmodernised ECT is incompatible with the principle of autonomy of Union law.

In addition, the protection granted to fossil fuels does not fit with EU objectives as defined in the European Green Deal, the REPowerEU Plan or the Climate Law – namely: to accelerate the shift away from fossil fuels and towards renewable energy, to achieve a greater energy independence, ensure the EU’s energy security, and, not least, deliver on the commitment to cut emissions by at least 55% by 2030 and to reach climate neutrality by 2050.

Documents

  • Text adopted by Parliament, 1st reading/single reading: T9-0335/2024
  • Decision by Parliament: T9-0335/2024
  • Debate in Parliament: Debate in Parliament
  • Committee report tabled for plenary, 1st reading/single reading: A9-0176/2024
  • Committee report tabled for plenary, 1st reading/single reading: A9-0176/2024
  • Committee draft report: PE759.993
  • Legislative proposal: 06509/2024
  • Legislative proposal published: 06509/2024
  • Preparatory document: COM(2023)0447
  • Preparatory document: EUR-Lex
  • Legislative proposal: 06509/2024
  • Committee draft report: PE759.993
  • Committee report tabled for plenary, 1st reading/single reading: A9-0176/2024
  • Text adopted by Parliament, 1st reading/single reading: T9-0335/2024

Activities

Votes

A9-0176/2024 – Anna Cavazzini, Marc Botenga – Draft Council decision #

2024/04/24 Outcome: +: 560, -: 43, 0: 27
FR DE ES PL IT RO PT NL BG SE BE HU IE DK AT HR SK FI LT CZ EL LV SI LU EE MT
Total
75
87
58
44
56
28
21
28
16
21
21
15
12
14
17
12
13
14
10
21
14
8
8
6
7
4
icon: PPE PPE
160

Hungary PPE

1

Denmark PPE

For (1)

1

Luxembourg PPE

2

Estonia PPE

For (1)

1

Malta PPE

For (1)

1
icon: S&D S&D
126

Belgium S&D

2

Slovakia S&D

For (1)

1

Lithuania S&D

2

Czechia S&D

For (1)

1

Greece S&D

1

Latvia S&D

2

Slovenia S&D

2

Luxembourg S&D

For (1)

1

Estonia S&D

2
icon: Renew Renew
97

Poland Renew

1

Bulgaria Renew

2
3

Hungary Renew

For (1)

1

Ireland Renew

2

Austria Renew

For (1)

1

Croatia Renew

For (1)

1

Finland Renew

3

Lithuania Renew

1

Greece Renew

1

Latvia Renew

For (1)

1

Slovenia Renew

2

Luxembourg Renew

2

Estonia Renew

3
icon: Verts/ALE Verts/ALE
68

Spain Verts/ALE

3

Poland Verts/ALE

For (1)

1

Italy Verts/ALE

For (1)

1

Romania Verts/ALE

1

Portugal Verts/ALE

1

Netherlands Verts/ALE

3

Sweden Verts/ALE

3

Belgium Verts/ALE

3

Ireland Verts/ALE

2

Denmark Verts/ALE

2

Austria Verts/ALE

3

Finland Verts/ALE

3

Lithuania Verts/ALE

For (1)

Abstain (1)

2

Czechia Verts/ALE

3

Greece Verts/ALE

For (1)

1

Luxembourg Verts/ALE

For (1)

1
icon: ECR ECR
61

France ECR

For (1)

1

Germany ECR

1

Romania ECR

1

Netherlands ECR

Abstain (1)

5

Bulgaria ECR

2

Sweden ECR

For (1)

3

Croatia ECR

1

Slovakia ECR

Abstain (1)

1

Finland ECR

2

Lithuania ECR

1

Greece ECR

Against (1)

1

Latvia ECR

For (1)

1
icon: The Left The Left
32

Sweden The Left

For (1)

1

Belgium The Left

For (1)

1

Denmark The Left

1

Finland The Left

For (1)

1

Czechia The Left

Against (1)

1

Greece The Left

2
icon: NI NI
37

Romania NI

For (1)

1

Netherlands NI

Abstain (1)

1

Belgium NI

For (1)

1

Croatia NI

2

Czechia NI

Against (1)

1

Greece NI

For (1)

Abstain (1)

3

Latvia NI

1
icon: ID ID
49

Denmark ID

Against (1)

1

Austria ID

3

Czechia ID

Against (1)

1

Estonia ID

Against (1)

1

History

(these mark the time of scraping, not the official date of the change)

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events/0/summary
  • PURPOSE: to withdraw the Union from the Energy Charter Treaty.
  • PROPOSED ACT: Council Decision.
  • ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act.
  • BACKGROUND: the Energy Charter Treaty was concluded by the Union by Council and Commission Decision 98/181/EC, ECSC, Euratom and entered into force on 16 April 1998. The European Union is a Contracting Party to the ECT, together with Euratom, 26 EU Member States (as of 8 May 2023), as well as Japan, Switzerland, Turkey and most countries from the Western Balkans and the former USSR, with the exception of Russia and Belarus.
  • In the absence of any substantial update of the Agreement since the 1990s, the Agreement became increasingly outdated. In 2019, the Contracting Parties to the Agreement engaged in negotiations aimed at modernising the Agreement in order to bring it into alignment with the principles of the Paris Agreement, the requirements of sustainable development and the fight against climate change, as well as with modern standards of investment protection.
  • The Contracting Parties concluded the negotiations on 24 June 2022. The negotiated outcome was meant to the adopted at the 33rd meeting of the Energy Charter Conference on 22 November 2022. Ahead of the meeting of the Conference, the Union was unable to find a common position on the modernisation of the Agreement.
  • In the absence of a Union position, the adoption of the modernised Agreement by the Energy Charter Conference is impossible. The current, unmodernised Agreement continues to apply to the Union, in spite of the fact that it is not in line with the Union’s investment policy and law, including in particular the principle of autonomy of Union law, and with the Union’s energy and climate goals.
  • With no alternative available, it is therefore necessary for the Union to withdraw from the Agreement.
  • CONTENT: the Commission’s proposal concerns a Council decision on the withdrawal from the Union of the Energy Charter Treaty in accordance with Article 47.1 of that Treaty.
  • According to the Commission, remaining a Contracting Party to the current, unmodernised ECT is not an option for the EU or its Member States, as the current, unmodernised Treaty is not in line with the EU’s investment policy and law and with the EU’s energy and climate goals.
  • The provisions of the Treaty as regards investment protection, including the investor-to-State dispute settlement (ISDS) mechanism, are not in line with the EU approach to investment protection. In particular, the unmodernised ECT is incompatible with the principle of autonomy of Union law.
  • In addition, the protection granted to fossil fuels does not fit with EU objectives as defined in the European Green Deal, the REPowerEU Plan or the Climate Law – namely: to accelerate the shift away from fossil fuels and towards renewable energy, to achieve a greater energy independence, ensure the EU’s energy security, and, not least, deliver on the commitment to cut emissions by at least 55% by 2030 and to reach climate neutrality by 2050.