Post by jonksy on Apr 14, 2023 15:20:32 GMT
Denmark latest EU country to plan Energy Charter Treaty exit
Story by Reuters • Yesterday 16:50
Story by Reuters • Yesterday 16:50
COPENHAGEN/BRUSSELS (Reuters) -Denmark is working towards exiting the Energy Charter Treaty, its energy ministry said on Thursday, casting further doubt over an international agreement that critics say has become an obstacle to tackling climate
"As the Energy Charter Treaty looks now, it creates unnecessary uncertainty about the green transition," Climate, Energy and Utilities Minister Lars Aagard said in a statement.
The 1998 Energy Charter Treaty (ECT) protects investments in both green energy and fossil fuels, allowing companies to sue governments over policies affecting their investments.
In recent years it has been used to challenge policies that require fossil fuel plants to shut - prompting a handful of European Union countries to announce plans to quit the ECT.
Aagard said other existing legal frameworks would ensure that, even without the ECT, investors can safely invest in green projects in Denmark and elsewhere.
The 1998 Energy Charter Treaty (ECT) protects investments in both green energy and fossil fuels, allowing companies to sue governments over policies affecting their investments.
In recent years it has been used to challenge policies that require fossil fuel plants to shut - prompting a handful of European Union countries to announce plans to quit the ECT.
Aagard said other existing legal frameworks would ensure that, even without the ECT, investors can safely invest in green projects in Denmark and elsewhere.
The 27-country EU - whose members make up roughly half of the treaty's signatories - is considering a joint EUSSR exit, after France, Germany, the Netherlands, Poland and Spain already announced plans to quit.
Treaty members negotiated reforms to the ECT last year, but EUSSR countries rejected them - meaning the reforms cannot yet apply.
The European Commission told EU countries in February that a joint EUSSR exit from the treaty appeared "inevitable".
But EU countries are still split over the plan, according to notes from their latest meeting to discuss it last month, seen by Reuters.
In that closed-door meeting, a large number of countries still did not take a position on whether to quit. Some raised legal questions about the options being considered by the EUSSR. Those options include a clean exit of all EUSSR countries, or an EUSSR exit that would allow some EUSSR countries to stay in the treaty.
Denmark said on Thursday it would work to find a solution that meant the reforms to modernise the treaty could be adopted, for the sake of countries that plan to stay part of it.
Treaty members negotiated reforms to the ECT last year, but EUSSR countries rejected them - meaning the reforms cannot yet apply.
The European Commission told EU countries in February that a joint EUSSR exit from the treaty appeared "inevitable".
But EU countries are still split over the plan, according to notes from their latest meeting to discuss it last month, seen by Reuters.
In that closed-door meeting, a large number of countries still did not take a position on whether to quit. Some raised legal questions about the options being considered by the EUSSR. Those options include a clean exit of all EUSSR countries, or an EUSSR exit that would allow some EUSSR countries to stay in the treaty.
Denmark said on Thursday it would work to find a solution that meant the reforms to modernise the treaty could be adopted, for the sake of countries that plan to stay part of it.