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Investment | Brussels, 12 July 2021

Energy Charter Treaty: substantial progress achieved in modernisation negotiations

From 6 to 9 July, the European Commission and the Member States took part in the sixth negotiation round regarding the modernisation of the Energy Charter Treaty (ECT).

The key objectives of the Commission’s proposal for the modernisation of the ECT are to update the investment protection standards and to ensure that the ECT facilitates the EU’s climate action and energy transition in line with the European Green Deal and the Paris Agreement.

In this context, the Modernisation Group discussed this week important subjects, such as the scope of the Treaty, for which the EU proposed a carve-out for fossil fuels. The ECT Secretariat presented options that could build on the flexibility already enshrined in the Paris Agreement. After constructive discussions, the Secretariat was mandated to further develop the options for the next negotiation round.

 

As regards Investment Protection, significant progress was made on the majority of the provisions. For some subjects, the ECT Secretariat will continue to develop either new compromise texts or non-papers with a view to make further progress and narrow down the outstanding issues.

 

The next round of negotiations will take place in September 2021.

 

Background

EU text proposal for the modernisation of the Energy Charter Treaty
EU additional submission to its text proposal for the modernisation of the Energy Charter Treaty
Public Communication on the sixth negotiation round of the Modernisation of the ECT