EU charts green path forward with ECT withdrawal, new regs

The impending decision by the European Parliament to withdraw from the international Energy Charter Treaty (ECT) and adopt further climate rules sets a clear direction for green regulations in the region.

The EU Parliament’s vote to withdraw, as consented to on April 24, follows similar moves by the United Kingdom and nine EU member states. The ECT was agreed in the 1990s and enabled fossil fuel companies to sue governments for loss of earnings caused by green regulations.

Withdrawing from the treaty will clear the way for further green legislation and, potentially, more support for renewables. The departure of the EU states will approximately halve the number of countries still within the treaty. Compliance leaders should expect other regions to follow suit.