The Netherlands withdraws from the treaty protecting energy investments

AMSTERDAM, Oct 19 (Reuters) – The Netherlands will follow Spain in withdrawing from the Energy Charter treaty protecting investment in the sector, its energy ministry said on Wednesday.

In force since 1998, the treaty, which has more than 50 signatories including the European Union, allows investors to sue governments for policies that jeopardize their investments.

But in recent years, it has been used by fossil fuel and renewable energy companies to sue governments over regulatory changes that threaten the performance of specific investments.

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Announcing the decision, Dutch Minister for Climate and Energy Policy Rob Jetten told parliament that the treaty was not in line with the Paris climate agreement and that efforts to renegotiate it had failed. said a spokesperson on Wednesday.

“For this reason, the Netherlands, preferably together with the whole EU, will leave the ECT. The official departure date of the Netherlands remains to be determined,” the spokesperson added.

Italy withdrew from the treaty in 2016.

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Reporting by Anthony Deutsch; Editing by Jan Harvey

Our standards: The Thomson Reuters Trust Principles.

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