EU agrees to quit energy investment treaty over climate concerns

By Thomson Reuters May 30, 2024 | 4:34 AM

BRUSSELS (Reuters) – European Union countries agreed on Thursday to jointly quit an international energy treaty, over concerns that it protects fossil fuel investments and undermines efforts to fight climate change, the Belgian EU presidency said.

The 1998 Energy Charter Treaty (ECT) allows energy companies to sue governments over policies that damage their investments. In recent years, some companies have used it to launch billion-dollar lawsuits against measures to shut or restrict fossil fuel projects.

Brussels proposed an EU exit from the treaty last year, after member states including Denmark, France, Germany, Luxembourg, Poland, Spain and the Netherlands announced individual plans to quit, with most citing climate change concerns.

The European Parliament approved the EU exit last month.

(Reporting by Kate Abnett and Diana Mandiá, editing by Bart Meijer)