France Becomes Latest Country To Leave Controversial Energy Charter Treaty

France has become the latest country to pull out of the controversial energy charter treaty (ECT), which protects fossil fuel investors from policy changes that might threaten their profits. The Guardian reports: Speaking after an EU summit in Brussels on Friday, French president, Emmanuel Macron, said: “France has decided to withdraw from the energy charter treaty.” Quitting the ECT was “coherent” with the Paris climate deal, he added. Macron’s statement follows a recent vote by the Polish parliament to leave the 52-nation treaty and announcements by Spain and the Netherlands that they too wanted out of the scheme.

The European Commission has proposed a “modernization” of the agreement, which would end the writ of the treaty’s secret investor-state courts between EU members. That plan is expected to be discussed at a meeting in Mongolia next month. A French government official said Paris would not try to block the modernization blueprint within the EU or at the meeting in Mongolia. “But whatever happens, France is leaving,” the official said. While France was “willing to coordinate a withdrawal with others, we don’t see that there is a critical mass ready to engage with that in the EU bloc as a whole,” the official added.

The French withdrawal will take about a year to be completed, and in that time, discussion in Paris will likely move on to ways of neutralizing or reducing the duration of a “sunset clause” in the ECT that allows retrospective lawsuits. Progress on that issue is thought possible by sources close to ongoing legal negotiations on the issue.