The UK's departure from the Energy Charter Treaty aligns with its net zero emission targets, following the lead of several EU countries.
The treaty, originally intended to protect energy investments, has been used by fossil fuel companies to sue governments for phasing out fossil fuels.
Efforts to modernize the treaty have stalled, prompting countries to abandon it due to its misalignment with contemporary climate objectives.
Key quote:
"The Energy Charter Treaty is outdated and in urgent need of reform but talks have stalled and sensible renewal looks increasingly unlikely."
— Graham Stuart, UK Minister of State for Energy Security and Net Zero
Why this matters:
The UK's exit from the Energy Charter Treaty marks a shift toward prioritizing environmental policies over fossil fuel interests. This move sets a precedent for other nations, underscoring the growing global commitment to combat climate change.
Six European countries have indicated they will leave the controversial Energy Charter Treaty despite green reforms, shaking up international investor protections.
The EU is trying to remove fossil fuels from the list of investments protected by the Energy Charter Treaty in order to stop its member states being sued over climate action.
