- Due to climate change concerns, EU countries agreed to exit the Energy Charter Treaty.
- The treaty allows energy companies to sue governments over investment policies.
European Union (EU) countries agreed to exit an international energy charter treaty, citing climate change concerns. The 1998 Energy Charter Treaty allows energy companies to sue governments over policies affecting their investments.
The European Parliament must approve the decision, which is expected given past support for leaving the treaty. Brussels proposed leaving the treaty in July, following member states like Denmark, France, Germany, and others.
Some EU countries wanted to stay, fearing it would hinder treaty modernisation efforts. To address concerns, the EU suggested allowing reforms before exiting.
This proposal led to an agreement. Approximately 50 signatories backed reforms last year, contingent on EU approval. One critical reform reduces the protection period for non-EU energy firms from 20 to 10 years within the bloc.