The UK Government has announced a review of its Energy Charter Treaty membership as they contemplate withdrawal without a key modernisation agreement
UK Contemplates Energy Charter Treaty Membership Review in Absence of Modernised Terms Agreement by November 2023. UK Energy Minister Graham Stuart announced today, September 1st, that the UK is reviewing its membership in the Energy Charter Treaty. The decision to stay or leave will depend on whether modernisation proposals for the treaty are approved in November.
UK Energy Charter Treaty
Last year, the treatment reached an important agreement to update the treaty’s terms, supporting the transition to cleaner energy while maintaining current benefits.
Prioritise clean, cost-effective energy like carbon capture, hydrogen, and renewables
The modernised treaty, strongly advocated by the UK, was supposed to have been adopted in November last year. It aimed to prioritise clean, cost-effective energy like carbon capture, hydrogen, and renewables. It would also reinforce the UK’s authority to shift its energy system towards net zero emissions and safeguard British investors abroad.
Weighing the benefits for investment and the clean energy transition
However, due to several EU member states leaving the treaty, modernising it is now a deadlock. Consequently, ministers are reassessing the UK’s involvement in the Energy Charter Treaty. This reassessment seeks to support the transition to cleaner, more affordable, domestically sourced energy, with a primary goal of enhancing energy security.
Minister of State for Energy Security and Net Zero, Graham Stuart, said:
“In its current form, the Energy Charter Treaty will not support those countries looking to make the transition to cleaner, cheaper energy sources such as renewables – and could even penalise our country for being at the forefront of those efforts.”
In its current form, the Energy Charter Treaty will not support those countries looking to make the transition to cleaner, cheaper energy sources
“Governments around the world are looking to boost their sources of home-grown energy, including with new clean technologies – and that is why the Energy Charter Treaty must be modernised. It is also why we are reviewing our membership and will consider withdrawal if that vital modernisation is not agreed.”
The UK: Fighting for cleaner energy
The UK will continue to consider the views of stakeholders in business carefully. Because of its robust legal system, the UK will still be an appealing place for energy sector investments, even if it decides to leave the Energy Charter Treaty.
