Following the UK, which left earlier this year along with France, Spain and the Netherlands, the EU has finally accepted that it cannot agree on modernisation of the Energy Charter Treaty, and MEPs have given their consent to leave it.

The Energy Charter Treaty (ECT), was established in 1994 to govern trade and investment in the energy sector, but has become controversial.

Parliament’s consent is required so that the Council can now adopt the decision by qualified majority.

Rapporteur for the Industry, Research and Energy Committee Marc Botenga said: “The Energy Charter Treaty allows fossil fuel multinationals to sue states and the EU if climate policies affect their profits. In the midst of a climate crisis, this is a contradiction, in addition to being very costly for taxpayers. Alongside civil society, a significant movement has been built to exit from this treaty and I am happy to see this is bearing fruit today. It is now necessary to speed up the rate of public investments in renewables.”

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