All articles tagged with #energy charter treaty
The European Union has unanimously agreed to exit the 1998 Energy Charter Treaty due to concerns that it protects fossil fuel investments and hinders climate change efforts. The decision follows individual exit plans from several member states and aligns with the EU's climate goals and the Paris Agreement. The EU will first approve reforms to the treaty before its withdrawal, which is expected to be finalized by the end of 2024.
The European Union (EU) is moving to withdraw from the Energy Charter Treaty (ECT), an investor protection pact that has been seen as hindering decarbonization efforts. The EU had attempted to reform the treaty to make it more difficult for fossil fuel companies to sue over policy changes that affect their investments, but the effort stalled. Eight EU countries have threatened to quit the treaty. The ECT has become a barrier to decarbonization as countries can face lawsuits from firms claiming damages for lost profits. Leaving the treaty is not easy, as there is a sunset clause allowing lawsuits to be filed for 20 years after a member leaves. The future of the treaty is uncertain, but some states may still rely on it even without the EU's participation.