Seanad debates

Wednesday, 22 September 2021

Nithe i dtosach suíonna - Commencement Matters

International Agreements

10:30 am

Photo of Lynn BoylanLynn Boylan (Sinn Fein) | Oireachtas source

I take it the Minister, Deputy Eamon Ryan, will not be here to respond to my matter either. This is not my first time questioning the Government and being unable to address the Minister responsible.

I again ask about the Government's position regarding the Energy Charter Treaty. I was disappointed by the response I received the last time that Ireland is happy to continue to throw its lot into a reform process that is going nowhere and that fails to address the core problems in the treaty.

Putting aside the fact that change to the treaty requires unanimity and Japan has ruled out any changes to it, the proposals brought forward by the EU Commission fall way short of what is needed. The EU amendments will lock in protections for gas plants, biomass and biogas. There are no proposals for a climate carve-out from investor protections. The EU is leaving the tribunal process, the lack of transparency, the conflicts of interest of the arbitrators and the high awards to the parallel process of reform being undertaken by the UN for which again there is no consensus internationally.

Since I last raised this matter in the House, the European Court of Justice has confirmed what those of us who follow these matters expected which is that following the earlier Achmea ruling, investor state dispute tribunals are not compatible with EU law. Does Ireland still want to continue to spend the critical time we should be using for climate action on negotiating changes to the Energy Charter Treaty?

To date, the investor-state dispute settlement, ISDS, tribunals have ignored the previous European Court of Justice rulings and dismissed member states' claims that the tribunals have no jurisdiction on intra-EU disputes. Since the earlier Achmea ruling, despite an agreement by all EU governments to object to ISDS in intra-EU disputes, 48 ISDS cases have been taken against Spain and it is facing €880 million in compensation awards from renewable energy firms. The Netherlands is facing multi-billion-euro compensation claims by EU investors including RWE which is currently investing in the energy sector in Ireland. Law firms are chomping at the bit to exploit Brexit so that companies can bypass the intra-EU ruling.

Surely it is time for Ireland to follow Italy and leave the Energy Charter Treaty. It has a 20-year zombie clause that ties governments to its provisions even after they leave, but Italy is now five years into its 20-year sunset clause while we are shackling our wagon to a reform process that is going nowhere and losing critical time to act on climate change. All the reports from the reform process suggest that there is no progress. France and Spain have called for withdrawal to be considered and are looking for support from their EU counterparts. I cannot understand why the Minister, as a member of the Green Party, which is completely opposed to ISDS, is not leading the charge for Ireland to leave the Energy Charter Treaty.

The nationwide smoky coal ban was delayed because of legal threats on behalf of foreign investors by the Matheson law firm, despite approximately 1,300 people dying prematurely every year as a result of air pollution. I believe the treaty was used to delay that action. While the ban will now be introduced because it has been extended to other fuels, the truth of the matter is that the treaty had a chilling effect on the Government's right to regulate.

I ask the Minister to outline what Ireland’s position is following the ruling of the European Court of Justice this month. Has it changed? Will it support leaving the treaty?

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