Franziska Brantner, Parliamentary Undersecretary at the Ministry of Economy, said the decision to withdraw from the Energy Charter Treaty (ECT) was part of the country’s commitment to “consistently align our trade policy with climate protection”. He added that the move was also an important message for the United Nations Climate Change Conference, COP27, currently underway in Egypt. Europe’s largest economy is leaving France, the Netherlands, Spain and Poland. The other countries have said the pact is incompatible with their commitments under the 2015 Paris Agreement to combat climate change.
COP27: Germany promotes its ‘climate club’
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What is the Energy Charter Treaty?
The ECT, which has more than 50 signatories, including the European Union, was designed to secure energy supplies and offer protection to companies investing in the energy sector. His focus was mainly on energy infrastructure investments in unstable former Soviet states in Central Asia and Eastern Europe, A key element of the treaty allows energy companies to sue governments over changes in energy policy that could harm their investments – exposing states to multibillion-dollar damages claims. German utility RWE used the ECT to take legal action against the Netherlands, arguing that the government had not allowed sufficient time and resources to transition away from coal. The case may have partly motivated the Dutch decision to withdraw from the treaty. In June, the European Union struck a compromise deal — which will come into effect next month if none of the signatories object — to revise the treaty to limit legal actions where they jeopardize climate goals. But climate groups have criticized gaps in the reporting and say it continues to jeopardize efforts to limit global warming.
“Obstacle to energy transition”
The leader of the Greens parliamentary group, Katharina Dröge, hailed the German decision as a “landmark”. “No other international trade or investment agreement in the world has sparked more investor lawsuits than the Energy Charter Treaty,” he told the dpa news agency. “This pact is an obstacle to the energy transition and is costing the state billions.” mm/aw (AFP, AP, dpa, Reuters)
