France leaves the Energy Charter Treaty deemed too favorable to fossil fuels

French President Emmanuel Macron at a press conference during an EU summit in Brussels, this Friday, October 21, 2022. AP - Olivier Matthys

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2 mins

Emmanuel Macron announced it this Friday, October 21 at the end of the European summit: France will leave the ECT, the 30-year-old Energy Charter Treaty.

This text is denounced by environmental protectors as overprotecting fossil fuels.

It is now rejected by several European countries, France is the latest.

A general movement could be taking shape in the EU.

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With our correspondent in Brussels,

This withdrawal was requested by many, says Emmanuel Macron, and this was particularly the case in France of the High Council for the Climate, a purely advisory body, but which echoed the concerns expressed in the neighboring countries of France.

Italy withdrew from this Energy Charter treaty already seven years ago, but it is above all the recent announcements of exit from Poland and then this week from Spain and the Netherlands that give the feeling of a European movement being born.

The Dutch announcement also occurred the day before the European summit and the French announcement after it, a sign of a concern now shared within the cenacle of the Twenty-Seven.

In line with our climate objectives, France is withdrawing from the Energy Charter Treaty.

pic.twitter.com/Z1qceGf8VT

— Emmanuel Macron (@EmmanuelMacron) October 21, 2022

"

 ”, argued Emmanuel Macron.

The question now is whether this Energy Charter Treaty will be denounced by all of the European signatories, including Germany.

Because the trigger for the exit from the Netherlands was a request for compensation from a German company to the Dutch state for 1.4 billion euros.

The main problem remains for the Europeans to also cancel the “survival” clause of this treaty, which allows a company to attack a faulty state for the twenty years following its exit.

The ECT was signed in 1994, when Russian energy markets seemed to lack stability and reliability.

Among other things, the ECT allowed the despoiled owners of Yukos to attack the Russian state.

Maxime Combes, economist, specialist in international energy issues, believes that this treaty can only delay or block the energy transition.

It permanently limits the ability of public authorities to regulate the energy sector in a detailed and substantial manner.

When the public authorities take decisions that run counter to the interests of investors in fossil fuels, i.e. the closure of coal-fired power stations, the regulation of the exploration and exploitation of fossil fuels, but also the evolution of support mechanisms for renewable energies.

And we know that the public authorities need all these mechanisms to operate the energy transition today, but also to deal with the global geopolitical situation which has an extremely strong impact on our energy supply.

So, it's good news from France.

So, the step that must be reached is

Maxime Combes, economist, specialist in international energy issues

Solene Leroux

►Read also: EU summit: a roadmap established to deal with the energy crisis

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