Denmark to withdraw from Energy Charter Treaty
Euractiv | 14 April 2023
Denmark to withdraw from Energy Charter Treaty
By Charles Szumski
Denmark will withdraw from the Energy Charter Treaty (ECT) as it creates more uncertainties about investments than certainties, the Danish government announced on Thursday.
The Danish government decided on Thursday to withdraw from the trade and investment agreement that aims to create secure framework conditions and attract private investors to invest between countries in the energy sector, protecting both green and fossil fuel energy investments.
“The protection of fossil fuel investments has raised challenges and concerns in some countries in the context of the transition away from fossil fuels. Several EU countries have therefore decided to opt out of the ECT”, the Danish Climate, Energy and Utilities Ministry declared in a press release.
Denmark thus joins other EU countries that expressed their intention to leave the treaty last year, such as Germany, Poland, Spain, the Netherlands or France, for which the withdrawal ECT will take effect in December 2023.
“Overall, the Energy Charter Treaty creates more uncertainty about investments than certainty,” said Climate, Energy and Utilities Minister Lars Aagaard.
“We have a framework in Danish legislation and in other international cooperation that ensures that investors can safely put their money into green projects both in Denmark and in other countries.”
Negotiations have been ongoing in recent years on a possible modernisation of the treaty, which the countries concerned do not consider sufficient. It is now uncertain whether modernisation can be implemented.
A final decision on Danish withdrawal from the ECT is yet to receive the consent of the Danish parliament.
