Future of EU international investment policy (short presentation)
Speaker: Anna CAVAZZINI (Germany, Group of the Greens/European Free Alliance / Bündnis 90/Die Grünen)
Date: 2022-06-22

  Anna Cavazzini,  rapporteur. – Madam President, the Netherlands are being sued by a foreign investor in front of an international tribunal just because they are exiting dirty coal. The EU itself is being sued by Nord Stream 2, of all companies, just because we regulated our gas market. It becomes clear that we have a problem. The international community has created in the last years a system that has got out of hand. Via investment protection treaties, international companies have got the right to challenge all kinds of democratic decisions in front of private international tribunals, and faced with those threats, Member States have basically two options: they can back away from public policy choices like getting out of fossil fuel, or they risk paying billions of euros in compensation. 
We saw thousands of citizens protesting in the streets against this perverse system. We saw scholars and judges speaking out for reform. We saw engaged debates in this Parliament. And because of this pressure, the EU’s approach to investment protection and dispute settlement has evolved in the last years. And this is good. The current EU model is better than it used to be and better than that of the Member States. But let me be clear; the Green Deal and the Paris Agreement demand more. They demand we continue to reform, to minimise risks for democracy and to transform our economy towards decarbonisation without a giant price tag. 
And this is exactly what we are doing in this report. We, as parliamentarians, are proposing today a new reformed model for the EU’s investment policy. First, we suggest in the report to end the protection of investments in fossil fuels or any other activities that pose significant harm to the environment and human rights – and cases against climate policies keep on piling up, delaying action, and costing millions to taxpayers. Investment must be channelled towards sustainable activities and away from those which are cooking our planet. 
Second, we want to stop giving a blank cheque to international investors to just sue states whenever they like. International investors should first need to go through national courts before using arbitration. We must cap the damage that can be awarded so that taxpayers do not risk having to pay billions to corporations. We demand narrower protection standards to limit abusive cases. In short, we must protect our ability to make laws and regulations. 
Third, the report takes a clear position on the Energy Charter Treaty. That is such a big problem for our climate policies and today we say, crystal clear, an empty deal cannot satisfy this Parliament, we need to exit this dirty treaty. 
I would like to thank the shadow rapporteurs for the excellent cooperation on this report. We reached, I think, an outcome that is balanced but bold, forward-looking, and shows also how relevant the European Parliament is on this topic, where we as parliamentarians unfortunately do not sit at the table during the negotiations on investment agreements. I call on the Commission and the Member States to take the demands of this report very seriously and adopt this as the new EU approach. Our report clearly asks Member States to terminate or modernise their old bilateral investment treaties.
So, investment policy can be a very powerful tool. Let us use it for the benefit of all of us.