The Netherlands is leaving the controversial Energy Charter Treaty (ECT), as it stands in the way of the global 1.5-degree target set in the Paris climate agreement.
The Dutch Minister of Climate, Rob Jetten, has officially announced his wish to withdraw the Netherlands from the agreement, which purpose is to facilitate global energy cooperation, writes the NOS.
Why is the ECT controversial?
The ECT has been in bad weather recently, as it ensures financial support to fossil fuel companies that see their income drop due to government-mandated climate efforts.
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In other words, the agreement states that countries like the Netherlands have to pay up to the biggest polluters on earth if they want to make progress in the sustainable energy field — hence the controversy.
This is making governments hesitant to shift economies away from the fossils, from fear of being slapped back by massive bills. Needless to say, environmentalists have not been too happy about this deal, with some even nicknaming it the “anti-climate agreement”.
Pay up!
The agreement has created quite the example out of Italy, which had to pay a baffling €240 million to a British oil company. But it doesn’t end there! Now, the same company is claiming the incomprehensible amount of €1.4 billion from the Dutch government.
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The reasoning behind these claims is that companies in the fossil fuel sector have the right to demand compensation for cash lost on investment and on lost income.
Aight, imma head out
Even though the ECT is currently being revised, to make life a little bit less super-comfortable for the fossil fuel industry, Minister Jetten wants to withdraw the Netherlands from the agreement sooner rather than later.
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Several European countries have already left, and Jetten is currently waiting for other EU states to join the Netherlands in the big exit.
However, it wouldn’t be sustainability news without a slightly depressing twist: although the withdrawals are good news for the climate cause, fossil fuel companies can still continue to claim reimbursements up to 20 years after the Netherlands has left the agreement. Ouch.
What do you think about Jetten’s plans for withdrawing from the ECT? Tell us your thoughts in the comments below!