The EU is considering a proposal to exit the Energy Charter Treaty on the basis that it locks countries into pursuing fossil fuel development pathways, leaving the option open for individual countries to stay in an updated version of the accord which is intended to address climate concerns. The Treaty was designed to support investor confidence in fossil fuel investments within signatory states, and entitles companies to sue governments over policies that put their investments at risk, including climate policies. The European Commission suggested that a coordinated EU exit from the treaty appeared unavoidable, particularly after France, Germany, the Netherlands, Poland, Denmark and Spain each announced plans to exit the treaty. However, Cyprus, Hungary and Slovakia, have indicated they may want to remain in a revised version of it.
