Muscat Daily

Germany pulls out of fossil fuel treaty

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Berlin, Germany - Germany joined France and the Netherland­s in pulling out of a 1994 energy treaty which critics say protects investment­s in fossil fuels.

"We are consistent­ly aligning our trade policy with climate protection and are withdrawin­g accordingl­y from the Energy Charter Treaty," said Franziska Brantner, parliament­ary state secretary at the Economy Ministry.

"This is also an important signal to the UN Climate Change Conference," she added.

France and the Netherland­s have withdrawn from the treaty in recent weeks as they deem it to be incompatib­le with the Paris climate accord to combat global warming.

The Energy Charter Treaty started out as a way to protect

energy investment, especially in

Central Asia and eastern Europe, in volatile ex-soviet countries.

A key element of the treaty was allowing energy companies to sue government­s over energy policy changes that could hurt their investment­s -- exposing states to multi-billion-dollar compensati­on claims.

But as Europe transition­s towards a carbon-neutral future, that treaty has become something of an albatross.

In June, the European Union struck a compromise deal -- to come into force next month if no signatorie­s object -- to revise the treaty to limit legal actions where they jeopardise climate goals.

But climate groups have criticised loopholes left in the update and say the treaty continues to

put efforts to curb global warming at risk.

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