Minister Habeck: “Cabinet takes key decisions for the future” Federal Government decides to exit the climate-damaging Energy Charter Treaty and approves key elements paper on the development of the trade agenda of 11 November 2022

from the Energy Charter Treaty. The cabinet also approved the key elements of the Federal Government on the further development of trade policy of 11 November 2022, and took important decisions on the immigration of skilled labour and the modernisation of the Code of Administrative Court Procedure.
Minister Habeck commented: “The Federal Cabinet today took four key decisions bringing clear progress. Firstly, we decided to leave the climate-damaging Energy Charter Treaty. That is an important step for more climate action. The Energy Charter Treaty was and continues to be a barrier to the energy transition, and is simply incompatible with the goals of the Paris climate agreement. Secondly, our key elements for the further development of our trade agenda have put in place a clear basis. They mean that Germany finally has a trade policy voice again, and can work proactively at EU level. Sustainability will cease just to be a “nice to have”, and will become an essential component of trade agreements. Thirdly, we are tackling structural reforms in Germany and sending out a clear signal for more immigration of skilled labour. In particular, we will significantly liberalise immigration law. A proactive and good immigration policy is also a policy to strengthen Germany as a centre for business. And, lastly, we are accelerating planning and approval procedures by modernising the Code of Administrative Court Procedure so that powerlines can be built more quickly in future.”

Further information on the Energy Charter Treaty and the development of the trade agenda:

The Energy Charter Treaty is a treaty under international law which entered into force for Germany in April 1998. The treaty contains provisions on investment protection, trade and transit of energy materials and products, and on dispute-settlement mechanisms. Today’s cabinet decision means that the Federal Government has decided to withdraw from the treaty. In formal terms, the withdrawal from the Energy Charter Treaty will now be communicated to the Portuguese Republic, the depositary of the treaty, before the end of 2022. This means that the withdrawal will take effect before the end of 2023. France, the Netherlands, Spain, Poland, Slovenia and Luxembourg have also announced their withdrawal from the treaty. Italy left back in 2016. The Federal Government is working at European level towards a withdrawal of the EU from the Energy Charter Treaty, as also called for by the European Parliament.

The withdrawal of the Federal Republic of Germany from the Energy Charter Treaty also forms part of the key elements paper adopted by Federal Government today on “further development of the Federal Government’s trade policy”, which stipulates other key elements of new German trade policy. In addition to the Energy Charter Treaty, this also affects CETA, the WTO, sustainability standards in European trade accords, Mercosur, investment protection agreements in general, EU trade agreements with Chile and Mexico, and the EU’s trade relations with the United States.

You can find the key elements paper (in German) here.