EU Eyes Removing Oil, Gas from Energy Charter Treaty: Press
The European Commission (EC) is seeking to phase out the protection of oil and gas investments in the international Energy Charter Treaty over the course of 10 years, Reuters reported on February 16, citing a copy of an EC proposal.
Under the proposal, protections for new investments in coal, oil and power generated from these sources would end immediately, while protections for natural gas-fuelled power infrastructure will remain until the end of 2023, provided they emit under 380g/kWh of CO2 and are able to use low-carbon gases.
Gas-fired power plants that replace dirtier coal-fired generation would be eligible for protection for a further 10 years after the treaty amendment comes into force, or until 2040 at the latest, according to Reuters.
The Energy Charter Treaty was signed in 1991, with the original aim of protecting oil and gas companies from political risk when investing in the former Soviet Union. But a number of EU countries are now calling for the treaty to be aligned with their climate ambitions.