UK quits treaty that lets oil firms sue government

The United Kingdom has decided to withdraw from the Energy Charter Treaty, a multilateral agreement that allows oil and gas companies to sue governments for alleged breaches of the treaty’s provisions.

The treaty, which was signed in 1991, has come under scrutiny in recent years for its controversial investor-state dispute settlement mechanism, which allows corporations to take legal action against sovereign states if they believe their investments are being unfairly treated.

By leaving the Energy Charter Treaty, the UK joins a growing number of countries that have expressed concerns about the treaty’s impact on national sovereignty and environmental regulations.

Environmental groups and activists have welcomed the UK’s decision to exit the treaty, as they believe it will help protect the country’s ability to implement and enforce strong climate policies without fear of costly legal challenges from the fossil fuel industry.