Members of the European Parliament (MEPs) have given their consent to the European Union's exit from the Energy Charter Treaty (ECT). This decision was reached following a recommendation from the Industry, Research, Energy, and International Trade committees, which was adopted by a substantial majority.

The vote, which took place with 560 MEPs in favor, 43 against, and 27 abstentions, paves the way for the EU to formally withdraw from the treaty. Parliament’s consent is essential for the Council to now adopt the decision by a qualified majority.

The Energy Charter Treaty, established in 1994, was designed to regulate trade and investment in the energy sector. However, over the years, it has become a subject of controversy and criticism. The European Parliament had previously expressed its concerns about the ECT and its compatibility with the EU's climate objectives, calling for the EU's exit in a resolution adopted in 2022.

Anna Cavazzini, the Rapporteur for the Trade Committee from the Greens/EFA group in Germany, commented on the vote, saying, “Today’s vote is a major step in the right direction. The EU is finally withdrawing from the climate-hostile Energy Charter Treaty. In view of the climate crisis, the EU must become a climate-neutral continent as quickly as possible. Finally, the fossil dinosaur treaty is no longer standing in the way of consistent climate protection, as we no longer have to fear corporate lawsuits demanding billions of euro in compensation brought before private arbitration tribunals.”

Similarly, Marc Botenga, the Rapporteur for the Industry, Research, and Energy Committee from The Left group in Belgium, emphasized the treaty's detrimental effects on climate policies. “The Energy Charter Treaty allows fossil fuel multinationals to sue states and the European Union if climate policies affect their profits. In the midst of a climate crisis, this is a contradiction, in addition to being very costly for taxpayers,” he stated. He further highlighted the need to accelerate public investments in renewables.

The ECT, which was initially aimed at fostering international cooperation in the energy sector, has largely remained unchanged since its inception in the 1990s. Over time, it has become outdated and has emerged as one of the most litigated investment treaties globally. The Commission has proposed a coordinated withdrawal by the European Union and its member states, deeming the Treaty incompatible with the EU’s climate goals as outlined in the European Green Deal and the Paris Agreement, particularly due to concerns over continued fossil fuel investments.

With the approval from MEPs, the EU is now taking a decisive step towards aligning its energy policies with its climate objectives, signaling a shift towards more sustainable and renewable energy sources.