The UK government has withdrawn from the Energy Charter Treaty (ECT) after the failure of efforts to deliver net zero.
Signed in 1994, the ECT was designed to promote international investment in the energy sector, historically providing protections for investors in fossil fuels.
Proposals to modernise the Treaty to support cleaner technologies have been subject to months of talks between European countries, resulting in a stalemate.
Graham Stuart, energy security and net zero minister, said the Treaty is "outdated" and "in urgent need of reform."
He commented: "Remaining a member would not support our transition to cleaner, cheaper energy, and could even penalise us for our world-leading efforts to deliver net-zero."
The UK joins nine EU member states, including France, Spain and the Netherlands, in withdrawing from the treaty.
The government said the decision will support the UK’s transition to net zero and strengthen its energy security.
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