The Energy Charter Treaty (ECT) is a political declaration on international energy cooperation with fifty-three Signatories and Contracting Parties, including all EU member states, except Italy. It is designed to promote energy security through the operation of more open and competitive energy markets, while respecting the principles of sustainable development and sovereignty over energy resources. The Treaty provides for dispute resolution procedures both between states and between states and investors in said states. Negotiations to modernise the Treaty are currently underway, led by the European Commission, primarily to align with Paris Agreement objectives and reforming the protections provided by the Treaty to carbon-intensive energy infrastructure. The ruling by the Court of Justice of the European Union referenced by the Deputy has since determined that the arbitration system under the ECT cannot be used to claim compensation in intra-EU disputes. While there have been further calls from several Member States since the ruling for a co-ordinated withdrawal from the Treaty, it should be noted that there exists a 20-year sunset clause under which Treaty terms would continue to apply. A co-ordinated withdrawal would therefore need to manage this risk.
Ireland's position remains to support the Commission's effort to negotiate meaningful reform of the Treaty in the first instance, while reserving the option to support a co-ordinated withdrawal should these efforts fail and if considered appropriate by Government to achieve our national renewable energy and climate ambitions.
