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Home > Legal & Regulatory docs.

European Union text proposal for the modernisation of the Energy Charter Treaty - 19 May 2020

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Year

2020

Summary

This document is the European Union's (EU) additional submission to its text proposal for the modernisation of the Energy Charter Treaty (ECT), sent to the ECT Secretariat on 19 May 2020, and tabled for discussion with the Contracting Parties to the ECT. It complements the placeholders for paragraphs (4), (4bis) and (5) of Article 1 (Definitions).

The actual text in the final agreement will be a result of negotiations between the EU and the Contracting Partners.

Introduction

As outlined in the conclusions on climate and energy diplomacy adopted by the Council of the European Union on 25 January 2021, climate change is an existential threat to humanity. Worldwide greenhouse gas (GHG) emissions remain on an unsustainable trajectory despite short-term emission reductions due to the impact of the COVID-19 pandemic. Global climate action still falls short of what is required to achieve the long-term goals of the Paris Agreement and thus the 2030 Agenda for Sustainable Development.

The EU emphasises the urgent need for progress in the negotiations for the modernisation of the Energy Charter Treaty, with a view to driving an inclusive global energy transition in alignment with Paris Agreement objectives.

The Paris Agreement, which was ratified by all but one Contracting Parties to the Energy Charter Treaty, provides the indispensable multilateral framework governing global climate action.

In line with the Paris Agreement and its long term decarbonisation and energy transition policies, the EU is bound to discourage all further investments into fossil fuel based energy infrastructure projects, unless they are fully consistent with an ambitious, clearly defined pathway towards climate neutrality in line with the long-term objectives of the Paris Agreement and best available science. The EU will support international efforts to reduce the environmental and GHG impact of existing fossil fuel infrastructure.

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