Portugal has announced that it has begun the process of withdrawing from the Energy Charter Treaty. The treaty, established in 1994, has 53 signatories, including the EU, and seeks to attract foreign direct investment by allowing energy companies to sue countries whose legislation puts their investments at risk.
Portugal’s Environment Minister Duarte Cordeiro told a session of the Parliament Committee on Environment and Energy that “it has started the denunciation process, and the motion for a resolution” to quit the treaty, Euractiv reports.
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Cordeiro added that he expects the government to approve the departure soon.
The announcement comes after the European Commission put forward a motion for a joint withdrawal from the Energy Charter Treaty across EU member states on 7 July.
EU Commissioner for Energy Kadri Simson described the treaty as “outdated” in a statement earlier this month. “Keeping an unmodernised Energy Charter Treaty is not a viable option for the EU. The Treaty in its current form is not in line with the EU’s investment policy or our energy and climate goals,” she added.
Portuguese environmental organisations have been calling for the country to withdraw from the treaty for a number of months. Troca, one of the campaign groups, has accused the treaty of protecting the interests of fossil fuel companies.
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By GlobalDataThe Netherlands, Spain and Poland have also announced plans to withdraw from the treaty in a growing trend among European countries. Italy also withdrew from the treaty in 2015.
The European Commission proposed a modernised version of the treaty in October 2022, which did not receive the majority required for it be adopted. The commission has suggested that a withdrawal from the treaty is the most meaningful way forward.
Energy Charter Treaty membership spans Europe, Turkey, Central Asia and Japan.
Several European fossil fuel companies have previously attempted to sue the EU over its climate change policies under the Energy Charter Treaty. The companies claimed that the policies affected profits.
Supporters of the treaty maintain that it also supports Europe’s investment in renewable technologies.
