State Secretary of the German Economy Ministry Franziska Brantner attributed his country’s decision, saying: “We are constantly aligning our trade policy with climate protection and as a result we are withdrawing from the Energy Pact Treaty.”
“This is also an important signal for the United Nations Climate Change Conference,” he added.
Interestingly, the 1994 Energy Charter Treaty was born as a way to protect energy investments, especially in Central Asia and Eastern Europe in the countries of the former Soviet Union. One of its key elements is to allow energy companies to sue in judgment governments for energy policy changes that could damage their investments, exposing countries to billions of dollars in claims and as Europe moves towards an emissions future zero, the energy treaty has become a burden. It reached the European Union in June to reform the Energy Charter Treaty, but non-governmental organizations found the agreement insufficient and asked Europeans to withdraw from it.