MEP hails progress towards exit from energy charter deal
FINE GAEL MEP for Ireland South, Sean Kelly, has hailed progress towards the European Union (EU) withdrawal from the International Energy Charter Treaty.
The deal, put into law in 1998, was designed to protect energy companies at the time.
But many commentators now view it as an obstacle to modern policies to address the climate crisis.
At a meeting of the Brussels parliament’s trade and industry committees, members overwhelmingly voted in favour of pulling out of the treaty.
Some 58 votes were in favour of doing this, eight against and two abstentions.
Signed in an era before climate change was a hot topic, the treaty establishes rules for the trade, transit and protection of energy investment.
It covers a wide range of energy-related activities, including exploration, production, and distribution of energy resources.
It also facilitates cross-border energy trade by providing a framework for dispute resolution and legal protection for investors.
However, criticisms of the ECT have emerged over time, particularly regarding its perceived obstacles to environmental sustainability and its impact on fossil fuel investments.
Among those voting for an end to the treaty was Mr Kelly.
He said: “The withdrawal from the Energy Charter Treaty is an important step that underscores the EU's commitment to fostering sustainable energy practices and mitigating climate change.
“The outdated nature of the ECT hindered our ability to enact meaningful change in line with the Paris Agreement and impeded our progress towards achieving our climate and energy targets. Once it became clear that the Treaty could not be modernised, it makes sense for the EU to leave it,” he added.
Mr Kelly believes the treaty - initiated 30 years ago - is now an “unnecessary hurdle” in the transition to a green future.
“Its provisions provided undue protection to fossil fuel investments, undermining our efforts to move towards renewable energy sources,” he added.
The Ireland South MEP, who is bidding for a fourth term in office, said the result of the vote reflects a “collective acknowledgement of the treaty's inadequacies and the imperative for decisive action.”
Mr Kelly emphasised the need for a coordinated approach to ensure a smooth transition.
“It is crucial that we maintain an equal playing field and provide flexibility for member states to adapt to the changing energy landscape,” the MEP concluded.