EU agrees to quit energy investment treaty over climate concerns

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The European Union (EU) has unanimously decided to withdraw from the Energy Charter Treaty (ECT), a move driven by concerns over fossil fuel protection and climate goals. The ECT allows energy companies to sue governments over policies impacting their investments, which has been used to challenge efforts to restrict fossil fuel projects.

The EU argues that the treaty hinders their ability to meet climate targets set by the Paris Agreement. Several member states, including France and Germany, had already begun individual withdrawal processes. The European Parliament also endorsed the EU’s exit last month.

This decision is a significant victory for environmental groups who have long criticized the ECT for prioritizing fossil fuels. However, the EU will participate in upcoming talks aimed at modernizing the treaty before their official departure. These reforms include a shortened “sunset clause” that limits the period for legal challenges by energy companies from non-EU countries.

The future of the ECT remains uncertain. While some member states may choose to remain after the EU’s exit, the bloc’s withdrawal sends a strong message about prioritizing climate action in energy policy.

Source: Reuters

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