Energy Charter Treaty - Update

I am aware that, following a review of its membership, the Government has announced that the UK, along with nine EU member states, will leave the ECT.

In 2022, the UK reached a landmark agreement to modernise the terms of the ECT, maintaining its current benefits while supporting the transition to cleaner energy. The modernised treaty, for which the UK has been a strong advocate, was supposed to have been adopted in 2022. I understand that it would have a much stronger focus on promoting clean, affordable energy, such as carbon capture, utilisation and storage as well as hydrogen and other renewables. It would also have strengthened the UK Government’s sovereign right to change its energy system to reach net zero and protect UK investors abroad. However, several EU member states decided to leave the treaty, leading to an impasse on modernisation.

I understand that after considering the views of businesses, industry and civil society, Ministers have decided to instigate the UK’s withdrawal, which will take effect after a year, removing protections for new investments after this period.

I am assured that the UK remains a world leader in cutting emissions, attracting international investment and providing the strongest legal protections for those who invest in the UK.


Fiona Bruce MP – 23rd February 2024