"Why Climate Groups Want Europe To Quit Obscure Energy Treaty"

"Critics say newly-agreed reforms to a treaty that allows energy companies to sue states for lost profits are 'greenwashing'".

"LONDON - Ministers from more than 50 countries have finalised reforms to an international treaty that critics claim could hinder climate action by helping companies sue governments whose plans to cut emissions from fossil fuels hurt their bottom line.

Since the late 1990s, the Energy Charter Treaty (ECT) has allowed energy companies and investors to challenge national policies that could undermine their profits.

Legal claims from the fossil fuel industry are on the rise, fuelling concern 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."

Beatrice Tridimas reports for Thomson Reuters Foundation June 28, 2022.

Source: Thomson Reuters Fdn., 07/01/2022