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EU may withdraw from the Energy Charter Treaty
19/7/2023
News
The European Commission (EC) has proposed that the European Union (EU), its member states and Euratom (the European Atomic Energy Community) withdraw from the Energy Charter Treaty. It has also proposed measures to make freight transport more efficient and more sustainable.
Largely unchanged since it was agreed in the 1990s and considered no longer compatible with the EU’s enhanced climate ambition under the European Green Deal and the Paris Agreement, the EC has proposed to withdraw from the Energy Charter Treaty in a ‘coordinated and orderly’ manner to ensure the equal treatment of investors across the EU and beyond.
To ensure legal clarity, the EC will also withdraw its previous proposal to ratify the modernised Treaty, which did not gather the required majority among member states.
Commenting on the news, Frans Timmermans, Executive Vice-President for the European Green Deal, said: ‘With the European Green Deal, we are reshaping our energy and investment policies for a sustainable future. The outdated Energy Charter Treaty is not aligned with our EU Climate Law and our commitments under the Paris Agreement. It’s time for Europe to withdraw from this Treaty, and to put all of our focus on building an efficient and competitive energy system that promotes and protects renewable energy investments.’
The legal proposals will now be submitted to the Council of the EU, where a qualified majority vote is necessary for their approval.
Greening freight for economic gain and less environmental impact
The EC has also proposed measures to make freight transport more efficient and more sustainable, by improving rail infrastructure management, offering stronger incentives for low-emission lorries, and better information on freight transport greenhouse gas (GHG) emissions.
The aim is to increase efficiency within the sector, helping it to contribute to the target of cutting transport emissions by 90% by 2050, as set out in the European Green Deal, while allowing the EU single market to continue growing.
Rail tracks are expensive to build and, in the EU, increasingly congested. It is hoped the proposed regulation will optimise their use, improve cross-border coordination, increase punctuality and reliability, and ultimately attract more freight companies to rail.
Current rules on capacity management are decided annually, nationally and manually. This does not favour cross-border traffic (around 50% of rail freight crosses borders); with the fractured approach leading to delays at borders. This, in turn, hinders the functioning of the Single Market. Delays due to congestion caused by uncoordinated maintenance work are also common.
More than 50% of freight is carried by road in the EU (according to 2020 figures), and this transport is a major contributor to GHG emissions. The current Weights and Dimensions Directive sets the maximum weight length, width and height for heavy-duty vehicles.
The new proposal revises these rules to allow additional weight for vehicles using zero-emission technologies, as they tend to increase a vehicle’s weight. This will incentivise the take-up of cleaner vehicles and technologies as trucks will be able to serve long-haul routes without having to lighten their load.
After the law enters into force, electric or hydrogen trucks could weigh up to 2 tonnes more. Green group Transport & Environment (T&E) welcomed the decision to support greener trucking by increasing weight limits under the EU Weights and Dimensions Directive.
Commenting on the news, Bernardo Galantini, Freight Officer, T&E, said: ‘Electric trucks with ranges of around 500 km are coming to the market in the next two years. The extra weight allowance will accelerate their roll-out by ensuring that no payload will be lost to accommodate batteries. This will make long-haul electric trucks more attractive to hauliers and shippers.’
Use of more aerodynamic cabins and other energy-saving devices will also be encouraged, not only improving driver comfort and safety, but also increasing the efficiency of zero-emission powertrains.
The proposal will also provide clarity on the use of heavier and longer vehicles in cross-border traffic, which are allowed today in some member states.
To encourage intermodal transport, where goods are moved using two or more transport modes but with a standardised cargo unit, lorries, trailers and semitrailers will be allowed to carry extra weight and extra height.
The EC is also proposing a common approach for companies to calculate their GHG emissions. The proposed methodology is based on the recently adopted ISO/CEN standard for the quantification and reporting of GHG emissions arising from the operation of transport chains of passengers and freight.
