Withdrawal from outdated Energy Charter Treaty welcome – MEP Kelly

MEP for Ireland South Seán Kelly has welcomed an important step towards the EU's withdrawal from the international Energy Charter Treaty (ECT). The treaty, which dates back to 1998, was designed to protect energy companies at the time, but has recently been viewed as an obstacle to modern policies to address climate change.

At today's joint meeting of the Parliament’s Trade and Industry committees, MEPs overwhelming voted in favour of withdrawing from the energy treaty (58 votes in favour, 8 against and 2 abstentions). 

"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," remarked Kelly, who sits on both the Trade and Industry committees.

"The outdated nature of the ECT hindered our ability to enact meaningful change in line with the Paris Agreement and impeded our progress towards achieving our climate and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."

The Energy Charter Treaty, signed over two decades ago, has long been criticised for its failure to adapt to the evolving energy landscape and its detrimental impact on climate action. Kelly emphasized, "The ECT has become an unnecessary hurdle in the transition to a greener, more sustainable future. Its provisions provided undue protection to fossil fuel investments, undermining our efforts to move towards renewable energy sources."

The European Parliament's Resolution supporting the EU's exit from the ECT reflects a collective acknowledgment of the treaty's inadequacies and the imperative for decisive action. 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," he stated.