Our Planet Climate and Geopolitics
When the Dutch government decided to phase out coal to hit climate targets, it was sued for €1.4 billion in compensation by German energy company RWE, under an obscure agreement called the Energy Charter Treaty. Not surprisingly, the Netherlands quit the treaty, along with France, Germany and Spain (RWE has since dropped its claim). The UK has now become the latest country to leave the treaty. It’s not just oil and coal companies that sought protection – the treaty has also been used, in Spain, to sue the government for withdrawing green energy subsidies. Quitting the treaty may help advance climate goals, but it mostly gives governments more flexibility on energy policy decisions. It remains to be seen how a Conservative government facing political oblivion will use that flexibility.