Towards Europe’s 2050 Climate Neutrality: Is There a Place for the Energy Charter Treaty?

Achieving climate neutrality is a major goal for the European Union. To make a sufficient contribution in this sector, the Energy Charter Treaty must be reformed.

In order to lower emissions by 55 percent by 2030 — as compared to 1990 — and to achieve climate neutrality by 2050, Europe must profoundly transform its energy sector. A strategy to achieve this has been proposed in the European Green Deal (EGD) policy. Incrementally, but nevertheless significantly, the European Union (EU) will be reducing its fossil fuel imports — substantially reducing coal imports by 2030, which are estimated to drop by 71-77 percent compared to 2015. After 2030, both oil and natural gas imports are set to decrease by 78-79 percent and 58-67 percent, respectively. While the EU intends to rely on oil and particularly gas imports for another decade, the decline in investments in fossil fuel infrastructure in the EU’s neighbourhood will likely be immediate. Nevertheless, in the long term, the EGD could lead to increased trade and investment in green electricity and hydrogen, which will have an essential role in the EU’s green future.