Slovenia withdrawing from Energy Charter Treaty
The government adopted an initiative on Thursday for Slovenia to withdraw from the Energy Charter Treaty, arguing the international accord is outdated and "a key obstacle to effective environmental and climate policies and responsible energy policies". The final decision will be made by the National Assembly.
Slovenia is thus joining other EU member states that have already withdrawn from the treaty, such as Italy, the government said in a press release. Withdrawal has also been announced by Poland, Spain, the Netherlands, France and Belgium.
The treaty, which took effect in 1998, has started losing its significance, with the EU enlargement and further integration allowing new and better possibilities of investment cooperation in the energy sector and legal safety of those involved, the press release said.
The EU has also developed state aid rules, environmental standards, financial mechanisms, investment law and competition protection legislation, the press release added.
One of the most significant aspects of the treaty being outdated is the institute of investment dispute resolution, allowing investors to take a signatory to international arbitration bypassing regular courts, the government said.
Under the treaty, the UK energy and natural resources company Ascent Resources has filed a request for arbitration against Slovenia after complications emerged in the country's green-lighting the company's gas project near Lendava in the north-east.
Slovenia has decided to withdraw from the treaty even though in June an agreement in principle was reached to update the treaty. The country believes the proposed amendments would bring much-needed changes, but believes these do not go far enough, the Infrastructure Ministry said after the government session.
Nevertheless, Slovenia will retain observer status within the signatories conference, wishing to observe the treaty. It will also remain a signatory of the 2015 Energy Charter which encourages mutually beneficial energy cooperation among countries from the entire world without being legal binding, the ministry said.