Brussels, May 30, 2024 – In a landmark decision today, the European Union and the European Atomic Energy Community (Euratom) have officially decided to withdraw from the Energy Charter Treaty (ECT), paving the way for its modernisation. This move comes as part of a political compromise, the Belgian roadmap, which aims to align the treaty with contemporary energy and climate objectives.
“The decisions adopted today mark a significant turning point for the EU’s energy policy,” said Tinne Van der Straeten, Belgian Minister for Energy. “By leaving the ECT, we are committing to a future that is in harmony with the Paris agreement and our own ambitious energy transition goals.”
The ECT, which has been in effect since 1998, is a multilateral framework that governs investment protection and trade in the energy sector. However, its provisions have increasingly been seen as incompatible with the EU’s climate commitments under the Paris agreement and the European Green Deal, particularly concerning the continued investment in fossil fuels.
The modernisation process for the ECT began in 2018, and with the EU and Euratom’s impending departure, member states that choose to remain will have the opportunity to vote on a modernised version of the treaty at the next Energy Charter Conference, expected by the end of 2024.
The withdrawal is set to take effect one year after the notification is received by the treaty’s depositary. Meanwhile, the member states that opt to stay will adopt a position on the treaty’s modernisation during the upcoming conference.
This development follows the European Parliament’s approval in April 2024 and is the culmination of efforts initiated by the Commission in July 2023 to withdraw from the ECT due to its misalignment with the EU’s climate goals.
The Council’s formal adoption of the four decisions today signifies the successful negotiation and agreement within the EU, allowing for a united front on the international stage as the bloc moves towards a more sustainable energy future.
