Federal Council wants to modernize controversial energy agreement
Published: Wednesday, Nov 20th 2024, 13:10
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The Federal Council wants to modernize the International Energy Charter Treaty, which came into force in 1998. The agreement is controversial. The EU recently decided to withdraw from the agreement.
The Energy Charter Treaty (ECT), which is binding under international law, was created to protect investments in gas, oil and coal projects. The treaty has never been revised in the past 26 years. It is now to be adapted to changing challenges with regard to the environment, climate and sustainability, the current practice of investment protection agreements and the changed geopolitical environment.
The agreement has long been criticized by environmental organizations. For example, it allows investors to take legal action against states before arbitration tribunals. The intention behind this is to guarantee companies security when investing.
"Of great interest to Switzerland"
In the summer, the EU decided to withdraw from the agreement. However, the member states can decide unilaterally whether they want to remain in the ECT and agree to modernization. Germany, France, Poland, Luxembourg and Slovenia have now withdrawn. Portugal, Spain, the Netherlands and the United Kingdom have announced their withdrawal.
However, a majority of the EU member states and the other contracting parties plan to remain in the agreement and approve the modernized ECT at the Energy Charter Conference on 3 December 2024. The Federal Council has authorized the Swiss representatives to also approve the agreement, as it announced on Wednesday. The agreement is "of great interest to Switzerland".
A consultation on the approval of the modernized ECT is to be opened in the spring. Parliament will decide on this. In spring 2023, the Foreign Affairs Committee of the National Council (FAC-N) rejected a motion calling for Switzerland to withdraw from the Energy Charter Treaty. This decision was taken at the time by 13 votes to 9 with 3 abstentions.
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