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Why does the EU want to quit the Energy Charter Treaty?
(Context, 25 Apr 2024) European lawmakers have backed plans for the EU to exit a treaty that lets fossil fuel firms sue when climate policies hit profits.
The European Parliament has backed plans for the EU to exit the Energy Charter Treaty, an international agreement protecting energy investments, over concerns it undermines efforts to fight climate change.
Since the 1990s, the Energy Charter Treaty (ECT) has allowed firms and investors to sue governments on the grounds that their profits could be hurt by policies aimed at cutting planet-heating emissions from fossil fuel burning.
Its critics say the threat of legal action under the ECT could deter governments from enacting clean energy policies that are vital to achieving international climate goals.
Here are some key features of the ECT and how it is being used by corporations to undermine national climate policies:
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Context, 25 Apr 2024: Why does the EU want to quit the Energy Charter Treaty?
