German cabinet approves exit from Energy Charter Treaty

German Economy Minister Robert Habeck on Wednesday announced his country's exit from the Energy Charter Treaty, as growing dissatisfaction with the agreement in Europe casts doubt over its future.

"The Energy Charter Treaty has proven itself in the past to be an obstacle for change," he said following a cabinet meeting during which ministers approved the move.

The international agreement, designed to secure energy supplies and grant protection to companies investing in the energy industry, has been criticised in recent years because it allows fossil fuel users to claim compensation when they are forced to shut plants.