The Danish government has recently announced that it will be pulling out of the Energy Charter Treaty (ECT) due to uncertainties about investments.
The move to pull out of the trade and investment agreement was officially announced on Thursday 13th April. Speaking in a press release, the Danish Climate, Energy and Utilities Ministry explains, “The protection of fossil fuel investments has raised challenges and concerns in some countries in the context of the transition away from fossil fuels. Several EU countries have therefore decided to opt out of the ECT.”
Lars Aagaard, Climate, Energy and Utilities Minister, comments, “Overall, the Energy Charter Treaty creates more uncertainty about investments than certainty.”
Germany, Poland, Spain, the Netherlands and France have all made the decision to withdrawal from the Treaty.
The Energy Charter Treaty aims to create secure framework conditions and attract private investors to invest between countries in the energy sector, protecting both green and fossil fuel energy investments.
