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The Energy Charter Treaty (ECT) is at a critical juncture as more European countries withdraw, citing conflicts with climate objectives. In the past year, Luxembourg, Slovenia, Portugal, and Spain have all confirmed their withdrawal, with Spain being the latest in April 2025.
The ECT was created in 1994 to encourage long-term cooperation in the energy sector and to safeguard investments. However, growing criticism has highlighted that its protections for fossil fuel investments may obstruct urgent climate action. Campaigners argue that the treaty is not aligned with the Paris Agreement and that it risks slowing down the transition to renewable energy.
Efforts to modernise the ECT began in late 2023 with proposals aimed at adapting it to the climate era, yet many governments believe the reforms do not go far enough. As a result, withdrawal has become a stronger option for countries prioritising their net-zero commitments.
Adding to the complexity is the “survival clause”, which keeps investment protections in place for 20 years even after withdrawal. Critics argue that this undermines national climate policies and keeps governments tied to outdated energy regulations.
The future of the ECT now hangs in the balance as the world watches whether more members will follow suit or if modernisation will eventually restore its relevance.
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