The UK is leaving the Energy Charter Treaty due the “failure of efforts to align it with net zero”.
Signed in 1994, the treaty was designed to promote international investment in the energy sector, historically providing protections for investors in fossil fuels.
Proposals to modernise the Energy Charter Treaty better to support cleaner technologies have been subject to months of talks between European countries, resulting in a deadlock.
The UK government confirmed in September 2023 it was reviewing its membership and could consider withdrawal if modernisation is not agreed.
Subscribe to Sustainability Beat for free
Sign up here to get the latest sustainability news sent straight to your inbox everyday
The UK is joining nine EU member states, including France, Spain and the Netherlands, in withdrawing from the treaty.
Minister of state for energy security and net zero Graham Stuart said: “The Energy Charter Treaty is outdated and in urgent need of reform but talks have stalled and sensible renewal looks increasingly unlikely.
“Remaining a member would not support our transition to cleaner, cheaper energy, and could even penalise us for our world-leading efforts to deliver net zero.
“With £30 billion invested in the energy sector just since September, we continue to lead the world in cutting emissions, attracting international investment and providing the strongest legal protections for those who invest here.
