Why are EU nations backing out of an obscure energy treaty?

(Context, 28 Oct 2022) France is the latest EU country to quit the Energy Charter Treaty (ECT) that has for decades let energy companies sue when government carbon cutting plans affect their profits

LONDON - Four European countries announced they will quit a controversial energy treaty in October, strengthening demands for the EU to withdraw before reforms are adopted at a conference next month.

Since the late 1990s, the Energy Charter Treaty (ECT) has allowed energy firms and investors to sue governments whose plans to cut emissions from fossil fuels hurt their bottom line.

Critics are concerned that the threat of legal action could deter governments from enacting clean energy policies vital to achieving international climate goals.

At a conference in June, member countries concluded a four-year process of modernising the treaty, intended to reflect evolving policy agendas to tackle global warming.

But the European Parliament and some member states are dissatisfied with the outcome, prompting decisions by Spain, France, the Netherlands and Poland to pull out.

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Context, 28 Oct 2022: Why are EU nations backing out of an obscure energy treaty?