The government has confirmed it is reviewing the UK’s membership of the Energy Charter Treaty and threatening to withdraw if “vital modernisation” is not agreed.
The purpose of the treaty is to provide protections for investors in fossil fuels, though a modernised version was supposed to have been adopted last November. This would have provided a “much stronger focus on promoting clean, affordable energy” such as carbon capture, utilisation and storage and hydrogen, as well as other renewables. The updated treaty would also strengthen the government’s ability to change the energy system to reach net zero and protect UK investors operating abroad.
However, with several EU members having already left, it has led to something of an impasse on modernisation. The UK is now waiting to see whether or not proposals to update it are adopted in November of this year, before then deciding on next steps.
Energy Security and Net Zero Minister, Graham Stuart, explained that the UK is looking for an agreement on a modernised treaty “as quickly as possible”.
Stuart continued: “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.”
