LONDON: The UK will join a string of European countries in leaving a controversial energy treaty that has allowed fossil fuel giants to sue governments over their climate policies, the government said on Thursday.

The decision to quit the 1990s-era accord comes after efforts to negotiate a modernised treaty ended in stalemate.

France, Germany, Spain and the Netherlands are also pulling out of the Energy Charter Treaty, while the European Parlia­ment has called for the entire 27-nation European Union to withdraw.

Italy, which lost a costly arbitration case against British oil company Rock­hopper under the treaty, announced it was leaving in 2015.

Established in the 1990s when the world energy system was heavily dominated by fossil fuels — coal, gas and oil, the treaty was originally intended to encourage international energy investment.

In practice, it has allowed foreign companies to challenge energy policies that threaten their investments under a secretive arbitration process. This has led to a number of countries facing costly legal challenges over reducing their reliance on fossil fuels and boosting renewables.

Published in Dawn, February 23rd, 2024