The European Parliament has voted with an overwhelming majority in favour for an EU coordinated exit of the Energy Charter Treaty (ECT). This vote follows the failure of the modernisation of the Treaty and the decision of several EU member states, representing over 70 per cent of the European population, to withdraw from the Treaty.
With no support in the European Council or in the European Parliament, the Commission is left with no other option but to take forward a coordinated exit.
This is a great day for the climate and people in Europe, who now have much better prospects for a fair and just energy transition! This victory belongs with the thousands of activists and civil society organisations who have been fighting to abandon the Energy Charter Treaty.
The ECT effectively blocks any kind of policy decision aimed at reducing the dependency on fossil fuels by giving corporations the right to sue countries that make policy decisions affecting the corporation’s profits. Companies can sue for billions, even if those policy decisions are necessary and urgent actions to tackle climate breakdown. The ECT contains investor state dispute settlement (ISDS), which enables corporations to make these claims against governments in secretive tribunals, outside of national justice systems.
The Left in the European Parliament has been calling for an exit of the ECT and will now redouble its efforts to make sure the Commission acts upon the Parliament’s resolution.
La Gauche Républicaine et Socialiste