The exit from the Energy Charter is intended to promote climate protection.
(Photo: dpa)
Berlin The traffic light coalition wants to get out of a controversial international energy agreement in order to advance climate protection. Members of the Bundestag from the SPD, Greens and FDP announced on Friday that the plan is to withdraw quickly from the so-called Energy Charter, like France or the Netherlands.
The agreement, which came into force in 1998, is intended to protect investments in energy projects and has long been criticized by environmental organizations. It allows investors, for example, to sue states before arbitral tribunals. Green parliamentary group leader Katharina Dröge praised the current step as a “milestone”.
At the same time, members of parliament from the government factions agreed to ratify the European-Canadian free trade agreement Ceta quickly. The corresponding law is to be drafted in the Bundestag session week beginning on November 28th.
CETA has been provisionally applied since 2017. In order to finally decide on it, it still needs ratification in the German Bundestag. But this has been on hold for years. The reason for this are controversial passages on investment protection on arbitration courts and expropriations in the agreement. The federal government had agreed in the summer to restrict the said passages through explanations of interpretation. As soon as that is done, they want to ratify the agreement.
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Germany’s desire for additional explanations was initially viewed critically by some EU partners, but they are now supported jointly. “Now Canada just has to agree, but that would have to be a formality,” said FDP economic politician Carl-Julius Cronenberg to the Handelsblatt. Then it will be possible to ratify CETA this year. It is expected that Germany’s ratification will send a signal to the other EU countries to finally decide on CETA as well.
>> Read here: New rules for investment guarantees unsettle the German economy
The two issues are apparently a compromise by the coalition: FDP circles have said that the exit from the Energy Charter is part of an overall agreement to achieve Ceta ratification. The Greens were previously critical here.
The EU actually wanted to work to reform the Energy Charter. The coalition agreement also states: “We are committed to reforming the Energy Charter Treaty.”
However, the result of the negotiations did not sufficiently meet expectations, said MPs Verena Hubertz (SPD), Andreas Audretsch (Greens) and Lukas Köhler (FDP). This is also due to an insufficient negotiating mandate from the EU Commission.
EU to explore TTIP
Green parliamentary group leader Dröge told the German Press Agency: “No other international trade or investment agreement in the world has triggered more investor lawsuits than the Energy Charter Treaty.” That is also a good sign against the background of the World Climate Conference. “This contract is an obstacle to the energy transition and costs the state billions.”
Dröge said corporations are using the charter to challenge oil drilling bans, pipeline bans, fossil fuel taxes and coal phase-out decisions, and to sue for “horrendous amounts of compensation.” “The contract was also the basis for lawsuits against the German nuclear phase-out or the Dutch coal phase-out.” It was logical to follow countries such as the Netherlands, France, Poland, Spain and Italy with this step.
The government factions also agreed on steps for further developing German trade policy. MEPs are working to ensure that the EU quickly concludes trade agreements with Chile and Mexico.
In addition, the EU should explore whether the US government is ready to negotiate a new attempt at a trade agreement after the failure of the TTIP agreement. In view of the geopolitical situation in particular, Germany and Europe should position themselves more broadly, strengthen partnerships and reduce political dependencies on individual countries, according to the joint declaration. “We want to intensify cooperation and trade, especially with countries with which we share fundamental values of liberal democracy.”
Economic risks: Ukraine war and tensions with China
Against the background of the Russian war against Ukraine and the growing tensions with China, Germany is trying to position itself more broadly economically. Economics Minister Robert Habeck said that the German export and import strategy should be diversified.
“Cluster risks” should be avoided or reduced. With investment guarantees, the government wants to create an incentive for companies not only to go to China, but also to other – for example Asian – countries.
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