The European Parliament recently approved plans for the European Union to leave the 1998 Energy Charter Treaty. The Treaty has provisions for energy companies to sue governments over policies that impact their investments. Several EU members announced plans to leave the Treaty, citing climate concerns as the reason. Some companies have used the Treaty to seek compensation over policies that would require them to phase out or shut down fossil fuel plants. If the EU follows its intent, the Treaty would lose approximately half of its signatories.
