- In a press release, the Danish Climate, Energy and Utilities Ministry stated, “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.”
- A final decision on Danish withdrawal from the ECT is yet to receive the consent of the Danish parliament.
On Thursday, The Danish government announced that Denmark would withdraw from the Energy Charter Treaty (ECT) as it creates more uncertainties about investments than certainties. 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.
In a press release, the Danish Climate, Energy and Utilities Ministry stated, “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.” 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.
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.