20 February 2023
Introduction
Civil Society Organisations, including CAN Europe, welcome the Commission’s non-paper on
the next steps regarding the membership of the EU and Euratom to the Energy Charter Treaty
(ECT). In particular, we strongly agree with the Commission Services that the EU’s withdrawal
from the ECT is unavoidable and that a coordinated withdrawal of the EU and all Member
States is by far the best option.
Why is an EU withdrawal unavoidable?
● The ECT reform does not have enough political support: The European Parliament
has rejected the reform as insufficient and called on the Commission and Member States
to initiate a coordinated withdrawal. Over 1 million citizens have signed a petition for
withdrawal and seven of the EU’s Member States have already decided to leave
(France, Germany, the Netherlands, Poland, Spain, Luxembourg and Slovenia; Italy
already left in 2016), including its major outward investors.
● There is no plausible scenario for the reform to ever enter into force if the EU
remains a member. EU ratification requires the consent of the European Parliament and
all EU Member States (see this legal blog), including those that want to leave or have
left.
● The ECT is an obstacle to sovereign climate and energy policies, even if it were to
be reformed. The French High Council on Climate has concluded that the ECT, “even in
a modernised form, is not compatible with the pace of decarbonisation of the energy
sector and the intensity of emissions reduction efforts needed by 2030, as reiterated by
the IEA and assessed by the IPCC.” Recently, investors have also started launching
cases against policies adopted in response to the energy price crisis (see for instance).
● It is generally accepted that the current version of the ECT is fundamentally
incompatible with EU law and the only way forward for the EU and the Member States
to rectify this is a coordinated withdrawal.
Why is a coordinated withdrawal (option 1 in the non-paper) the best
option?
● This approach is the safest and most coherent: Given the ongoing energy price crisis
and accelerating climate change, states need full regulatory power to combat energy
poverty and manage a swift and just energy transition. A coordinated withdrawal
combined with an inter-se agreement to clarify the inapplicability of the ECT for intra-EU
cases and to neutralise the sunset clause where required, would be the strongest
safeguard against expensive ISDS claims. Over 65% of ISDS cases under the ECT are
intra-EU, which under option 1 would no longer be admissible. A scattered withdrawal
(option 2 of the non-paper), however, would create many risks and undermine EU unity
(more details below).
● Most comprehensive: The EU could open the door to non-EU contracting parties of the
ECT to join the coordinated withdrawal and neutralise the sunset clause. This should
include all EU accession candidates, as they would have to withdraw from the
agreement once they become EU members, and close economic partners such as the
UK and Switzerland.
● Surest: The European Parliament has already stated in its resolution from 24 November
2022 that it would consent to this option. Option 1 would be the most straightforward for
EU institutions and Member States: the administrative burden would be minimal and the
political consensus easy to build.
What are the risks and limitations of the other options?
Option 2
● Politically undesirable: Some Member States would remain a contracting party to the
ECT, while others withdraw. This would undermine cohesion in EU external
representation and within its internal market, and question EU’s unity. It would create an
unlevel playing field, potentially affecting the implementation of EU law across Member
States facing different liability regimes.
○
● Uncertainty if the ECT will ever be reformed: Option 2 rests on the assumption that
other non-EU contracting parties to the ECT would be willing to conclude and ratify the
reform after the EU left but this is very questionable. The EU has been the main
advocate of ECT reform so far, while Japan originally saw no need to reform any of the
provisions of the current ECT. In the context of the EU Member States and the EU
leaving the ECT, it is likely that non-EU contracting parties will show a diminished
willingness to ratify the June 2022 compromise, casting a successful reform into doubt.
2
● Huge legal uncertainties: The application of partly the old and partly the new ECT in
relation to different EU Member States would create a very complex legal situation.
There would be considerable uncertainty about which aspects of the ECT MS or the EU
are bound to. It would be a chaotic scenario with high legal uncertainty, very different to
a clear coordinated withdrawal.
● Uncertain political feasibility: The European Parliament supports a coordinated
withdrawal from the ECT, which it considers an obstacle to Member States’ ability to fulfil
their climate obligations and to regulate their energy systems in response to the current
crises. It is highly questionable that it would authorise option 2.
● Very long and burdensome procedure: Option 2 requires individual acts authorising
EU Member States to remain contracting parties to the ECT similar to Regulation (EU)
No 1219/2012. Conditions like those in the Grandfathering regulation would have to be
attached to these authorisations. In parallel, the reformed ECT would have to be ratified
by ¾ of its contracting parties, which will at best take years with the uncertainties
mentioned above. In the meantime, the unreformed treaty would continue to apply to
remaining EU Member States.
● All diplomatic and political efforts would fall on remaining Member States: The
Commission has made its position clear: it would only authorise Member States to
remain a party within a reformed ECT. The responsibility of reforming the ECT and
ensuring its swift ratification would fall only on those Member States, who decide to stay
- including the diplomatic coordination amongst them, the outreach to non-EU ECT
parties, and funding the ECT Secretariat. They would not enjoy the support of bigger EU
countries or Commission services in this task. If they fail, they would have to withdraw
anyway.
Option 3
● A legal and political nightmare: The reformed ECT would only enter into force once ¾
of contracting parties have ratified it. This process would at best take years but chances
of it ever happening are very small given that non-EU Member States would be aware
of the intention of the EU to leave once the reformed treaty enters into force. This would
make the EU hostage to the interests of foreign nations.
● Politically untenable: At least seven Member States have already decided to withdraw,
and several of them rejected the reform outcomes in November. The European
Parliament has also made it clear that it rejects the reform outcomes as they are neither
aligned with the European Green Deal nor with the EU’s new approach on investment
policy. The EP already demanded more far-reaching reforms of EU investment policy in
last year’s own-initiative report on the future of EU investment policy, which got
overwhelming support from across the political spectrum.
● Far greater risk of ISDS cases: Member States would expose themselves to a greater
risk of arbitration cases due to expansion of the treaty’s coverage to new untested
technologies, such as CCS or hydrogen, on which policy frameworks and approaches
3
are still exploratory. EU governments should not tie their hands via the ECT if they are
still testing what is the best approach to these technologies. The ECT is unnecessary to
attract foreign investments into the EU, as made clear by the Commission.
● Uncertain effect: the main rationale for option 3 is that it would attempt to update the
outdated investment and energy provisions of the ECT; but it is uncertain whether after a
withdrawal the sunset clause would actually prolong the old or the modernised version of
the ECT – probably the modernised version would only apply to disputes where both
home and host state have ratified or provisionally applied the modernisation.
CONTACTS
Cornelia Maarfield: Senior Trade and Investment Policy Expert,
[email protected], +49 170 8765 271
Marie-Amélie Brun: Communications Coordinator,
[email protected],
+33 6 77 39 23 54
[email protected]
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4
Saatja: <=?utf-8?Q?Kristel_T=C3=A4nover?=>
Saadetud: 06.03.2023 10:04
Adressaat: <"MKM info">
Teema: FW: Pöördumine energiaharta lepingu teemal
Manused: Pöördumine ECT teemal - Eesti Roheline Liikumine.asice; Briefing ECT Exit
February 2023.pdf
From: Marilin Eessalu <
[email protected]>
Sent: Monday, February 27, 2023 5:02 PM
To: Riina Sikkut <
[email protected]>
Cc: Kristel Tänover <
[email protected]>;
[email protected]
Subject: Pöördumine energiaharta lepingu teemal
Lp Riina Sikkut,
saadan pöördumise energiaharta lepingu (ECT) teemal ning lühida infolehe, et jagada
keskkonnaühenduste seisukohti, miks oleks Eestil ja Euroopa Liidul vajalik sellest väljuda.
Heade soovidega,
Marilin Eessalu
MTÜ Eesti Roheline Liikumine
tegevjuht
+372 555 258 00
3357245 -268605 Riina Sikkut M ajandus- ja taristuminister
[email protected] Ta rtu , 27. veebruar 2023 Lp m inister Sikkut, kirjutame teile seoses Eesti liikmelisusega energiaharta lepingus ( Energy Charter Treaty, ECT), et paluda teie toetust Euroopa Liidu, Eesti ja teiste EL liikmesriikide koordineeritud väljumisele sellest lepingust nii kiiresti kui võimalik. ECT takistab energiaüleminekut, on vastuolus EL-i seadustega ning kahjustab Euroopa Roheleppe eesmärke. ÜRO valitsustevahelise kliimamuutuste ekspertrühm (IPCC) viitab, et ECT hoiab tagasi riikide võimekust kiirendada energiaüleminekut. Nii Prantsusmaa Kliimanõukogu , Saksamaa kui Hollandi valitsused on jõudnud järeldusele, et isegi uuendatud ECT ei ole kooskõlas Pariisi kokkuleppega. Samuti on see takistuseks riiklikele energiapoliitikatele, mis saaksid leevendada käimasolevat energiakriisi, nagu näiteks juhusliku kasumi ( windfall profit ) maksud . Saksamaa, Prantsusmaa ja Poola on ametlikult teatanud lepingust väljaastumisest. Holland, Hispaania, Sloveenia ja Luksemburg on lubanud seda teha sel aastal. Euroopa Parlament hääletas hiljuti EL-i kooskõlastatud väljaastumise poolt ja ka komisjon toetab nüüd seda valikut. On selge, et ECT reformimine ei ole reaalne lahendus ning seetõttu on komisjon jõudnud järeldusele, et EL-i tagasiastumine lepingust „on vältimatu” . Rohkem infot selle koht leiab kirjale lisatud infodokumendist . Ka Eesti peaks toetama EL-i täielikku ning kooskõlastatud väljaastumist See lähenemine on kõige turvalisem ning täielikum lahendus ECT suluseisust üle saamiseks. EL-i liikmesriigid peavad taastama täieliku kontrolli oma õigusruumi üle, et tulla toime käimasoleva energakriisiga ning saavutada kiire ning õiglane üleminek taastuvenergiale. Eestil on võimalus võtta kliimateemadel juhtroll ning toetada ECT-st väljumist ning selleks vajalikke samme juba enne järgmist Euroopa Liidu Nõukogu energeetika töörühma arutelu. Hea meelega jagame oma seisukohti sel teemal lähemalt. Ühendust võib võtta :
[email protected] Parimate soovidega, MTÜ Eesti Roheline Liikumine , Marilin Eessalu , tegevjuht CAN Europe, Chiara Martinelli, Director Client Earth, Anaïs Berthier, Head of Client Earth Brussels Office and EU Affairs Ecologistas en Acción, Luis Rico, Coordinator Entraide et Fraternité, Renaud Vivien, Coordinator of the political service Friends of the Earth Europe, Jagoda Munic, Director PowerShift, Tine Laufer, Director Seattle to Brussels Network, Leah Sullivan, Coordinator SOMO, Audrey Gaughran, Director Transnational Institute, Fiona Dove, Director Veblen Institute, Mathilde Dupré, Co-Director