Dáil Éireann Debate, Thursday - 27 April 2023
74. Deputy Joan Collins asked the Minister for the Environment, Climate and Communications if the Government intends to declare its intent to leave the Energy Charter Treaty, given the widely criticised European Commission reforms to the treaty. [20140/23]
View answerDoes the Government intend to declare its intention to leave the Energy Charter Treaty, ECT, in light of the widely criticised reforms proposed by the European Commission? When I questioned the Taoiseach on the ECT last week, I was told we would work in concert with the EU on modernisation. However, the European Commission said that given the number of countries quitting individually, renegotiating the treaty did not seem feasible and that modernisation had failed. Will the Government declare its intention to leave the Energy Charter Treaty given the failed reform process by the European Commission?
Ireland has expressed strong views within the EU on the compatibility of the Energy Charter Treaty with the Paris Climate Agreement, especially the charter treaty's dispute resolution mechanism. We continue to express our strong views within the EU on these issues. We believe it carries more weight in international negotiations to advocate them as part of the European Union.
In 2017, the Energy Charter Conference decided to modernise the treaty in order to respond to criticisms of the dispute resolution mechanism in Article 26. Our view is that it is inconsistent with the objectives of the Paris Agreement and with policy objectives of the EU and other countries which seek to phase out fossil fuels in favour of renewables. This modernisation process has not been completed.
Ireland continues to support a co-ordinated EU withdrawal from the Energy Charter Treaty if it is not modernised to align it with the Paris Agreement, to address our concerns, and to support international efforts to decarbonise electricity systems and promote more renewable energy.
We are working with EU partners to reach a common position. If a decision is made for a co-ordinated exit of EU member states from the treaty, Ireland will support that position and we will withdraw. However, we reserve the right, and maintain this a live option, to unilaterally withdraw should the treaty not be reformed to a level that is deemed satisfactory.
Nine countries have indicated they will leave the treaty and a number have already left. The modernisation attempts have failed. The European Commission has already agreed on modernisation reforms leading to countries exiting the treaty with EU officials saying that there is no qualified majority in the Council to adopt the modernised treaty. The European Commission said that given the number of countries quitting individually, renegotiating the treaty did not seem feasible. Countries have been leaving the treaty in reaction to these reforms. Reforms include a provision to protect existing fossil fuel companies for ten years.
The treaty has been described as a threat to climate action by civil society groups and UN experts and violates the goals of the Paris Climate Agreement by offering legal protection to climate-wrecking fossil fuel companies. I ask the Minister to lead by example. The modernisation is not working and even if it works there will be fewer countries in the ECT putting more pressure on the countries that remain, if they do, to support the ECT financially.
I had meetings last week with some of the nine countries the Deputy mentioned. They were very appreciative of our support and our co-ordinated work with them within the European Union to seek to deliver a withdrawal from the treaty. We are best placed and have most influence in that European Union process to achieve that objective rather than acting unilaterally. However, as I said in my opening response, should that not be successful, we reserve the right to act in that way. I agree with the Deputy. I do not believe the modernisation recommendations have delivered the scale of change we need in the treaty. In those circumstances, it is not appropriate for us to continue to be members. I believe a co-ordinated European approach to achieve a common withdrawal is the best way we can use our influence within the European Union to deliver on the climate agenda that I seek to further.
We need to lead on these issues and we are not leading by remaining in those negotiations. We are supporting the closed-door arbitration court which allows companies to sue for lost profits. We are supporting the protection of €344.6 billion in European fossil fuel assets. Total claims are estimated to cost governments €1.3 trillion worldwide by 2050. There is an ongoing case brought by German company RWE for €1.4 billion despite Germany announcing in 2023 its own phasing-out of coal. How can we even stay within these negotiations. They are not working. Why have nine countries, the Netherlands, Slovenia, Spain, Germany, France, Italy, Denmark, Poland and Luxembourg, already left? We should be leading. The European Parliament voted with a majority of 100 votes to leave the treaty. Eight countries represent about 70% EU population. An open letter signed by more than 280 parliamentarians from across the EU said that "The ECT is a serious threat to Europe's climate neutrality target and more broadly to the implementation of the Paris Agreement." The Minister should come before the Dáil and have statements on this to allow a real debate on where we are at the moment. We should be pulling out of this and indicating that very strongly.
I do not disagree with the criticisms the Deputy outlined in the first part of her last contribution. However, we are also in the middle of negotiations and discussions with the European Commission on the issue. Various Commission papers are being circulated. It would not be right for us to abandon that process and-----
Why have the other countries abandoned it?
They have not. They are working with us and are appreciative of our support in working in a co-ordinated European way to see how we can achieve and deliver a European withdrawal which meets the objectives of those nine countries and will also meet the Irish objectives and still maintain a common European position. That is a prize worth trying to gain and deliver. We are in the middle of doing that at this time.
It is benefiting the fossil fuel companies. We should have statements on this in the Dáil.
