The European Parliament gave its consent on Wednesday for the EU to exit the energy charter treaty, an international agreement protecting energy investments, over concerns that it undermines efforts to fightThe 1998 Energy Charter Treaty allows energy companies to sue governments over policies that damage their investments. In recent years, companies have used it to seek compensation for measures that require shutting down fossil fuel plants.
Brussels proposed a joint exit, after EU members including Denmark, France, Germany, Luxembourg, Poland, Spain and the Netherlands announced their own plans to quit, mostly over climate concerns.
To soothe those concerns, EU countries are expected to agree that they will first allow reforms to modernise the treaty to pass, before quitting.