IIGCC letter to EU leaders regarding the modernisation of the Energy Charter Treaty
On 8th December, through IIGCC, investors representing trillions in assets called on members of the European Council to support the European Parliament‘s amendment (Amendment 143 on article 8a) of the EU Climate Law which stipulates that the EU: “shall end protection of investments in fossil fuels in the context of the modernisation of the Energy Charter Treaty”.
To align Europe’s economy with net zero emissions, near term actions are needed to avoid further carbon lock-in of assets. This includes strengthened domestic energy and climate policies, and clarity from policymakers regarding the timetable for transitioning carbon intensive sectors and phasing out direct and indirect fossil fuel subsidies. The Energy Charter Treaty is currently inconsistent with Europe’s net zero climate ambition as the treaty’s provisions support private fossil industry investments, by making national states liable to cover any foreign fossil fuel investments which are made unprofitable by domestic climate policy.
To address this inconsistency, and as part of modernising the Energy Charter Treaty, the letter calls for the Council to support this Amendment 143 on article 8a during discussions on the EU Climate Law at the European Council meeting of 10th – 11th December.
The full letter is available to download below.