France is pulling out of a 1994 treaty that President Emmanuel Macron said was protecting investment in fossil fuels at a time when Europe was transitioning towards a greener future.
"France has decided to withdraw from the Energy Charter Treaty (ECT)," Emmanuel Macron told a news conference in Brussels Friday following a European Union summit.
The move comes two days after the Netherlands also quit the charter.
Macron said the decision would be more respectful of the Paris climate agreement by relying more heavily on renewable energy sources, while at the same time countering speculation in the energy market.
The High Council for the Climate (HCC) on Thursday said France and the European Union should leave the ECT.
3. Le retrait coordonné du #TCE par la France et les États membres de l’UE apparaît comme l’option la moins risquée pour permettre l’atteinte des objectifs #climat et le respect des rythmes de décarbonation nécessaires à l’horizon 2030 (4/9)
— Haut conseil pour le climat (@hc_climat) October 20, 2022
The Energy Charter Treaty started out as a way to protect energy investment, especially in Central Asia and eastern Europe, in volatile ex-Soviet countries.
A key element of the treaty was allowing energy companies to sue governments over energy policy changes that could hurt their investments, exposing states to multi-billion-dollar compensation claims.
But as Europe transitions towards a carbon-neutral future, that treaty has become something of an albatross.
In June, the European Union struck a compromise deal – to come into force next month if no signatories objected – to revise the treaty to limit legal actions where they jeopardise climate goals.
But climate groups have slammed loopholes left in the update and say the treaty continues to put efforts to curb global warming at risk.
The Netherlands announced on Wednesday it was pulling of the treaty on grounds that it was incompatible with the Paris agreement.
(with AFP)
