UK government to review Energy Charter Treaty membership

The UK government has confirmed it is reviewing its membership of the Energy Charter Treaty and will consider withdrawal if modernisation is not agreed.

It comes after an announcement last year that the UK was agreeing to modernise the energy charter, meaning that it could maintain its current benefits while supporting the transition to cleaner energy.

The treaty, which was signed in December 1994, has historically provided protections for investors in fossil fuels, and contains provisions for cooperation in the energy sector – primarily the fossil fuel industry.

However, the proposals to amend the energy charter include a focus on promoting clean, affordable energy, carbon capture, utilisation and storage, as well as hydrogen and other renewables.

The UK’s membership is now dependent on whether the proposals for the treaty’s modernisation are adopted in December.


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Several EU member states include Denmark, Germany, Spain and the Netherlands have already left the treaty, while the latest move comes after experts urged the UK to leave the agreement back in February.

The European Commission also said at the that the remaining parts of the treaty would ‘clearly undermine’ climate targets and that an exit by EU countries appeared ‘inevitable’.

“Rather than being stuck indefinitely with an outdated treaty, the UK wants to see an agreement on a modernised treaty as soon as possible,” said Energy Security and Net Zero minister Graham Stuart.

“In its current form, the energy charter treaty will not support those countries looking to make the transition to cleaner, cheaper energy sources such as renewables – and could even penalise our country for being at the forefront of those efforts.”

“Governments around the world are looking to boost their sources of home-grown energy, including with new clean technologies – and that is why the energy charter treaty must be modernised. It is also why we are reviewing our membership and will consider withdrawal, if that vital modernisation is not agreed”.

EnergyNewsPolicy

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