Germany will pull out of the 1994 energy treaty that has been widely criticized for protecting investments in fossil fuels, a spokesperson for the government said Friday.

Franziska Brantner, parliamentary state secretary at the Economy Ministry, said the decision to withdraw from the Energy Charter Treaty (ECT) was part of the country's commitment to "consistently aligning our trade policy with climate protection."

She added that the move was also an important signal to the United Nations Climate Change Conference, COP27, underway in Egypt.

Europe's largest economy joins France, the Netherlands, Spain and Poland in withdrawing from the pact.